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

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 lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day down 1.8%. By the end of trading, Fossil fell $3.06 (-3.2%) to $92.10 on average volume. Throughout the day, 674,306 shares of Fossil exchanged hands as compared to its average daily volume of 882,300 shares. The stock ranged in price between $91.08-$94.34 after having opened the day at $94.05 as compared to the previous trading day's close of $95.16. Other companies within the Consumer Durables industry that declined today were: A. T. Cross Company ( ATX), down 8%, Flexsteel Industries ( FLXS), down 7.5%, Bassett Furniture Industries ( BSET), down 6.8%, and Nautilus Group ( NLS), down 5.4%.
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Fossil, Inc., together with its subsidiaries, engages in the design, development, marketing, and distribution of consumer fashion accessories worldwide. It operates in four segments: North America Wholesale, Europe Wholesale, Asia Pacific Wholesale, and Direct to Consumer. Fossil has a market cap of $5.58 billion and is part of the consumer goods sector. The company has a P/E ratio of 16.9, below the S&P 500 P/E ratio of 17.7. Shares are up 1.2% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Fossil a buy, one analyst rates it a sell, and six 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, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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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