Market Commentary and Intraday News
Fossil shares rebound Friday
246 days ago
By The Associated Press
Fossil Inc.'s shares jumped Friday, recovering from a recent decline, as investors regained some of their appetite for riskier stocks.
THE SPARK: Fossil shares jumped more than 11 percent Friday. While there was no single catalyst, analysts say one driver is investors choosing to get back into riskier, more volatile growth stocks as the broader market has stabilized.
THE BIG PICTURE: Fossil shares tend to be volatile.
Its stock price jumped at the beginning of August when it reported a 12 percent increase in its second-quarter net income. But shares fell about 8 percent since then on some analyst concerns and an emphasis on international business, which exposes it to the risk of changing foreign exchange rates. Fossil makes accessories including watches, jewelry and handbags.
THE ANALYSIS: JPMorgan analyst Ike Boruchow said the company's stock may simply be playing catch-up.
Fossil performed well in its second quarter, with stronger sales in each of its markets and improved margins. He also noted that foreign exchange pressure from Europe has eased some since it reported.
"If Q2's trend is real, then the stock is going to have momentum to it," he said.
SHARE ACTION: The stock rose $9.60, more than 11 percent, to close at $93.60. It has traded between $62.77 and $139.20 in the past 52 weeks.
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