Fossil Inc. (FOSL): Today's Featured Consumer Goods 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 Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day up 0.5%. By the end of trading, Fossil rose $1.24 (1.2%) to $106.25 on light volume. Throughout the day, 545,495 shares of Fossil exchanged hands as compared to its average daily volume of 773,400 shares. The stock ranged in a price between $104.74-$107.42 after having opened the day at $105.05 as compared to the previous trading day's close of $105.01. Other companies within the Consumer Goods sector that increased today were: Central European Distribution ( CEDC), up 18.4%, MGP Ingredients ( MGPI), up 13.1%, Modine Manufacturing Company ( MOD), up 7.8% and Primo Water ( PRMW), up 7.3%.
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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 $6.2 billion and is part of the consumer durables industry. The company has a P/E ratio of 18.1, above the S&P 500 P/E ratio of 17.7. Shares are up 13.9% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Fossil a buy, 1 analyst rates it a sell, and 7 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, reasonable valuation levels and solid stock price performance. 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, Fuwei Films (Holdings ( FFHL), down 13.4%, Chromcraft Revington ( CRC), down 6.8%, Ever-Glory International Group ( EVK), down 6.4% and China Shengda Packaging Group ( CPGI), down 4.0% , were all laggards within the consumer goods sector with Companhia de Bebidas das Americas Ambev ( ABV) being today's consumer goods sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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