A New Trick Up Its Sleeve: Fossil Group, Inc. (FOSL), BorgWarner Inc. (BWA)

Fossil Group, Inc. (NASDAQ:FOSL) rose 2.31% this week, a trend that has led to both investors and traders taking note of the stock. Over the past one year, the equity price has embarked on a rally that has seen it rise 19.55% and is now down by -4.39% since start of this year. A look at its monthly performance shows that the stock has recorded a -7.22% fall over the past 30 days. Its equity price dipped by -11.16% over the past three months which led to its overall six-month decrease to stand at -36.86%.

The shares of Fossil Group, Inc. (FOSL) dropped by -53.25% or -$17.13 from its last recorded high of $32.17 which it attained on June 22 to close at $15.04 per share. Over the past 52 weeks, the shares of Fossil Group, Inc. has been trading as low as $11.4 before witnessing a massive surge by 31.93% or $3.64. This price movement has led to the FOSL stock receiving more attention and has become one to watch out for. It jumped by 1.28% on Thursday and this got the market excited. The stock’s beta now stands at 0.22 and when compared to its 200-day moving average and its 50-day moving average, FOSL price stands -29.93% below and -7.67% below respectively. Its average daily volatility for this week is 3.12% which is less than the 4.84% recorded over the past month.

Experts from research firms are bullish about the near-term performance of Fossil Group, Inc. with most of them predicting a $13.8 price target on a short-term (12 months) basis. The average price target by the analysts will see a -8.24% rise in the stock and would lead to FOSL’s market cap to surge to $685.45M. The stock has been rated an average 0, which roughly stands towards the bullish end of the spectrum. Reuters looked into the 5 analysts that track Fossil Group, Inc. (NASDAQ:FOSL) and find out that 2 of them rated it as a Hold. 1 of the 3 analysts rated it as a Buy or a Strong Buy while 2 advised investors to desist from buying the stock or sell it if they already possess it.

A look at FOSL technical analysis shows that its 14-day Relative Strength Index (RSI) is in a neutral zone after reaching 44.08 point. Its trading volume has lost -769977 shares compared to readings over the past three months as it recently exchanged 1030023 shares. This means there is reduced activity from short-term traders as per session, its average trading volume is 1800000 shares, and this is 0.57 times the normal volume.

The price of BorgWarner Inc. (NYSE:BWA) currently stands at $37.64 after it went down by $-0.99 or -2.56% and has found a strong support at $37.27 a share. If the BWA price drops below that critical support, then it would lead to a bearish trend. In the short-term, a dip below the $36.91 mark would also be bad for the stock as it means that the stock would plunge by 1.94% from its current position. However, if the stock price is able to trade above the resistance point around $38.33, then it could likely surge higher to try and break the upward resistance which stands at $39.03 a share. Its average daily volatility over the past one month stands at 2.42%. The stock has plunged by 0.11% from its 52-weeks high of $37.6 which it reached on Apr. 18, 2018. In general, it is 13.76% above its 52-weeks lowest point which stands at $32.46 and this setback was observed on Dec. 26, 2018.

Analysts have predicted a price target for BorgWarner Inc. (BWA) for 1 year and it stands at an average $47/share. This means that it would likely increase by 24.87% from its current position. The current price of the stock has been moving between $37.6 and $38.66. Some brokerage firms have a lower target for the stock than the average, with one of them setting a price target as low as $36. On the other hand, one analyst is super bullish about the price, setting a target as high as $56.

The BWA stock Stochastic Oscillator (%D) is at 17.4%, which means that it is currently oversold and its prices could jump very soon. The shares P/S ratio stands at 0.75 which compares to the 1.43 recorded by the industry or the 136.96 by the wider sector. The stock currently has an estimated price-earnings (P/E) multiple of 8.08, which is lower than the 8.59 multiple of 12-month price-earnings (P/E). The company’s earnings have gone up, with a quarterly increase rate of 10.2% over the past five years.

Analysts view BorgWarner Inc. (NYSE:BWA) as a Hold, with 2.1 consensus rating. Reuters surveyed 20 analysts that follow BWA and found that 7 of those analysts rated the stock as a Hold. The remaining 13 were divided, with 13 analyst rating it as a Buy or a Strong Buy while 0 analysts advised investors to desist from buying BorgWarner Inc. (BWA) shares or sell it if they already own it.