Stock to Watch

Pacific Sunwear of California Inc. (ticker symbol: PSUN) shares fell 32% on Tuesday amid concern that November sales at its stores open for more than a year were little changed, perhaps foreshadowing a weak holiday season.

Shares of the Anaheim-based casual apparel retailer, which targets the young adult market, fell $7.81 to close at $16.50 in Nasdaq trading of 10.5 million shares, 15 times the three-month daily average.

Analyst Joseph Grillo of BT Alex. Brown Inc. downgraded Pacific Sunwear to “market perform” from “buy” and reduced his fiscal 1998 per-share earnings estimate to $1.11 from $1.13.