Earnings help Fossil shake off downgrade

Wall Street rewards Fossil with a double-digit jump.

By Motley Fool Aug 6, 2013 5:40PM
It's been quite a week for Fossil (FOSL) investors. Shares jumped more than 18% Tuesday after the company reported earnings. This comes after the drop on Monday, when Barclays downgraded the stock to a sell. 

Second-quarter earnings beat analysts' expectations on both EPS and revenue. Third-quarter guidance was less than expected, though full-year guidance matched the consensus.
Fossil's earnings rally was welcomed by investors, who on Monday watched the stock fall 6% after the downgrade of the stock. Motley Fool analyst David Hanson explains why the Barclays analyst downgraded the stock Monday and what it means for Fossil long term. Then David goes into the earnings report, and notes that including Tuesday's rally, the stock is up 80% in the past year. 

Image: Price Tags (© Randy Faris/2007/Corbis/Corbis)Finally is this stock a buy, sell or hold after the roller coaster of activity in the past few months? Hanson suggests this is a time to hold. With Monday's jump investors may want to wait for a slight pull back before buying in. Yet with room to grow, especially overseas, Fossil is still worth keeping in your portfolio.

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1Comment
Aug 6, 2013 5:52PM
avatar
Hmmmm, Fossil never heard of it, still wonder what the hell they really do ??
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