Like Abercrombie, Fossil Inc (NASDAQ:FOSL) has been adversely impacted by sluggish activity in Europe. Although the stock is making steady progress off $98.65 from the beginning of last week, there isn’t a lot of enthusiasm surrounding Fossil right now. Most analysts recommend a hold with an upside potential of around $112, but the problem with Fossil is, again like Abercrombie, more macro-related.
Generally speaking, there are low barriers to entry in this space, and high-end retail sales are very sensitive to economic turbulence. Much of today’s price gains could be attributed to the positive retail sales figures that came from Johnson-Redbook (+1.3%), but this is still lower than the expected gain of 1.6%. Once these numbers are digested into the market, Fossil Inc (NASDAQ:FOSL) could experience some light profit taking around $106-107.
With all of this in mind, it’s important to track hedge fund sentiment, particularly of the world’s billionaire money managers. Paul Tudor Jones is always a good investor to pay attention to, and his top five equity holdings give “monkeys” a solid starting point for further research.
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