Fossil, Inc (FOSL):
 The well-known watchmaker ticked out its first-quarter earnings before the bell. And at first blush, I like what I saw.

In the period, it earned $0.26 a share, which is a dime north of expectations. It also indicated that it’s looking for $1.50 to $1.70 a share in fiscal ’09. Not bad because the Street is at $1.45.

I like the stock and think it could head higher from here. A few more quick thoughts:

1. I have a hunch analysts will be upping their estimates in the days ahead. And if I’m right, this could draw retail attention.

2. Based on its ’09 outlook, a fairer price would be in the $22 to $24 range at this point.

3. I’d keep in mind that the stock has already had a nice little run over the last couple of months, so a pullback at some point wouldn’t surprise me.

Target (TGT):
 Keep an eye on the discount retailer in the weeks and months ahead. I think the stock has the potential to really rock.

The reasons:

1. I see the economic data like everyone else, and believe the macro picture is starting to brighten. However, I still think consumers will be very cost-conscious, which I think plays into the hands of Target, Wal-Mart (WMT) and dollar-type stores.

2. I’m noticing that William Ackman of Pershing Square fame is pushing for change. He made news this past week, pushing for new board members. I think this will get management working to get the stock price moving in the right direction. My feel is that the shareholder will be a winner in this tug of war.

3. I’m noticing that the estimates are starting to inch up. In fact, data shows that over the last 30 days, the estimate for the April quarter has gone from $0.48 to $0.59, and the estimate for the July quarter has gone from $0.57 to $0.63.

Keep an eye peeled.  I see good things happening here.

Have a great day!