Trade-Ideas: Fossil Group (FOSL) Is Today's Post-Market Leader Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Fossil Group ( FOSL) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Fossil Group as such a stock due to the following factors:

  • FOSL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $70.2 million.
  • FOSL is up 2.9% today from today's close.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in FOSL with the Ticky from Trade-Ideas. See the FREE profile for FOSL NOW at Trade-Ideas

More details on FOSL:

Fossil Group, Inc., together with its subsidiaries, is engaged 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. FOSL has a PE ratio of 15.8. Currently there are 5 analysts that rate Fossil Group a buy, 2 analysts rate it a sell, and 5 rate it a hold.

The average volume for Fossil Group has been 621,900 shares per day over the past 30 days. Fossil Group has a market cap of $5.4 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 2.72 and a short float of 6.4% with 6.34 days to cover. Shares are down 13.9% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Fossil Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.9%. Since the same quarter one year prior, revenues slightly increased by 9.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, FOSSIL GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for FOSSIL GROUP INC is rather high; currently it is at 60.76%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.78% trails the industry average.
  • FOSSIL GROUP INC's earnings per share declined by 14.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FOSSIL GROUP INC increased its bottom line by earning $6.62 versus $5.62 in the prior year. This year, the market expects an improvement in earnings ($7.20 versus $6.62).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null

More from Markets

4 Stocks Making Important Moves Wednesday

4 Stocks Making Important Moves Wednesday

Dow Futures Turn Positive After Boeing Earnings Blowout; Twitter Boosts Nasdaq

Dow Futures Turn Positive After Boeing Earnings Blowout; Twitter Boosts Nasdaq

Facebook, Boeing, Shire and Credit Suisse - 5 Things You Must Know

Facebook, Boeing, Shire and Credit Suisse - 5 Things You Must Know

Facebook Prepares for Earnings and 4 Other Stories You Must Know Wednesday

Facebook Prepares for Earnings and 4 Other Stories You Must Know Wednesday

Facebook's Investors Have a Big Day Ahead

Facebook's Investors Have a Big Day Ahead