Fossil Inc. (FOSL): Today's Featured Consumer Durables Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Fossil ( FOSL) pushed the Consumer Durables industry higher today making it today's featured consumer durables winner. The industry as a whole closed the day up 0.5%. By the end of trading, Fossil rose $3.19 (3%) to $110.65 on heavy volume. Throughout the day, 3.7 million shares of Fossil exchanged hands as compared to its average daily volume of 708,700 shares. The stock ranged in a price between $110.26-$115.19 after having opened the day at $111.52 as compared to the previous trading day's close of $107.46. Other companies within the Consumer Durables industry that increased today were: Cobra Electronics Corporation ( COBR), up 5.9%, Whirlpool Corporation ( WHR), up 4.1%, Movado Group ( MOV), up 3.7%, and Flexsteel Industries ( FLXS), up 3.7%.
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Fossil, Inc. designs, develops, markets, and distributes consumer fashion accessories worldwide. Fossil has a market cap of $6.24 billion and is part of the consumer goods sector. The company has a P/E ratio of 20.9, above the S&P 500 P/E ratio of 17.7. Shares are up 11.6% year to date as of the close of trading on Monday. Currently there are five analysts that rate Fossil a buy, one analyst rates it a sell, and five rate it a hold.

TheStreet Ratings rates Fossil as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, Panasonic Corporation ( PC), down 4.5%, Mattress Firm ( MFRM), down 4.2%, Elecsys Corporation ( ESYS), down 2.8%, and Stanley Furniture Company ( STLY), down 2.4%, were all laggards within the consumer durables industry with VeriFone Systems ( PAY) being today's consumer durables industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer durables industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the consumer durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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