Schaeffer's Top Stock Picks for '25

Fossil Stock Shorts Get Crushed After Earnings

FOSL stock is up 82% in electronic trading

Feb 14, 2018 at 9:27 AM
facebook X logo linkedin


Shares of Fossil Group Inc (NASDAQ:FOSL) have gapped nearly 82% higher in electronic trading -- set to soar to their highest point since an early May bear gap, and poised for their best day ever -- after the watchmaker reported better-than-expected fourth-quarter earnings and revenue, citing strong demand for wearables. The retailer also said same-store sales jumped 2% in the last three months of 2017, while e-commerce sales surged 31%.

Analysts were quick to chime in after the earnings beat, too, with no fewer than five brokerages boosting their price targets on the retail shares. The most optimistic came from KeyBanc, which raised its FOSL price target to $25 from $10 -- a 177% premium to last night's close at $9.04, and territory not charted since last February.

The stock -- which topped out above $139 at its April 2012 peak -- has been charting a path steadily lower since late 2014. More recently, FOSL's rally off its early November 17-year low of $5.50 was halted near the $11 mark -- a familiar level of resistance that's contained the security since an early August bear gap. Today's premarket upside has Fossil ready to slice through this region, and trade north of its 200-day moving average for just the second time since December 2016.

A short squeeze will likely help fuel Fossil's fire today. Short interest is up more than 41% since early October, to 18.89 million shares -- the most in at least 16 years. This accounts for 43.2% of FOSL's available float, or 7.5 times the stock's average daily pace of trading.

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));