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Fossil Group (FOSL) Gains As Market Dips: What You Should Know

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Fossil Group (FOSL - Free Report) closed at $15.20 in the latest trading session, marking a +0.13% move from the prior day. This change outpaced the S&P 500's 2.06% loss on the day. Elsewhere, the Dow lost 1.81%, while the tech-heavy Nasdaq lost 2.99%.

Heading into today, shares of the watch and accessories maker had lost 22.07% over the past month, lagging the Retail-Wholesale sector's loss of 5.47% and the S&P 500's loss of 6.47% in that time.

FOSL will be looking to display strength as it nears its next earnings release, which is expected to be February 12, 2019. The company is expected to report EPS of $1.27, up 98.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $809.50 million, down 12.09% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.03 per share and revenue of $2.56 billion, which would represent changes of +1960% and -8.03%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for FOSL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. FOSL is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, FOSL currently has a Forward P/E ratio of 14.74. For comparison, its industry has an average Forward P/E of 13.1, which means FOSL is trading at a premium to the group.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 47, putting it in the top 18% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow FOSL in the coming trading sessions, be sure to utilize Zacks.com.


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