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 0.4%. By the end of trading, Fossil rose $1.62 (1.5%) to $109.50 on average volume. Throughout the day, 865,960 shares of Fossil exchanged hands as compared to its average daily volume of 865,900 shares. The stock ranged in a price between $107.46-$110.44 after having opened the day at $107.73 as compared to the previous trading day's close of $107.88. Other companies within the Consumer Durables industry that increased today were: Nautilus Group ( NLS), up 5.2%, Movado Group ( MOV), up 4.8%, Entertainment Gaming Asia ( EGT), up 4.3% and Ballantyne Strong ( BTN), up 3.9%.
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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 $5.9 billion and is part of the consumer goods sector. The company has a P/E ratio of 17.7, equal to the S&P 500 P/E ratio of 17.7. The company has a P/E ratio of 17.7, above the S&P 500 P/E ratio of 17.7. Shares are up 6.3% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Fossil a buy, 1 analyst rates it a sell, and 6 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.

On the negative front, Appliance Recycling Centers Of America ( ARCI), down 10.0%, Global-Tech Advanced Innovations ( GAI), down 3.9%, Elecsys Corporation ( ESYS), down 2.5% and Universal Electronics ( UEIC), down 2.1%.

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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