Fossil Group (FOSL) Moves 8.3% Higher: Will This Strength Last?

Fossil Group FOSL shares soared 8.3% in the last trading session to close at $5.2. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 19.1% gain over the past four weeks.

Fossil is sharpening execution with a brand-led, consumer-centric turnaround: more full-price selling, tighter costs, stronger innovation, and momentum in the U.S. and India—supporting margin gains and durable growth.

This watch and accessories maker is expected to post quarterly loss of $0.22 per share in its upcoming report, which represents a year-over-year change of -120%. Revenues are expected to be $205.3 million, down 12% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Fossil Group, the consensus EPS estimate for the quarter has been revised 236.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on FOSL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Fossil Group is a member of the Zacks Retail - Apparel and Shoes industry. One other stock in the same industry, Urban Outfitters URBN, finished the last trading session 5.4% higher at $68.22. URBN has returned -1.7% over the past month.

Urban Outfitters' consensus EPS estimate for the upcoming report has changed -1.5% over the past month to $1.12. Compared to the company's year-ago EPS, this represents a change of -3.5%. Urban Outfitters currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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