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Crocs (CROX) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Crocs (CROX - Free Report) closed at $135.61, marking a -0.68% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.97%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.45%.

Shares of the footwear company have appreciated by 8.6% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 6.03% and the S&P 500's gain of 5.41%.

Investors will be eagerly watching for the performance of Crocs in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.12, marking a 4% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.05 billion, reflecting a 0.08% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.88 per share and revenue of $4.13 billion, indicating changes of +7.07% and +4.19%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Crocs. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.3% rise in the Zacks Consensus EPS estimate. Crocs currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Crocs is currently trading at a Forward P/E ratio of 10.6. Its industry sports an average Forward P/E of 19.44, so one might conclude that Crocs is trading at a discount comparatively.

One should further note that CROX currently holds a PEG ratio of 1.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Textile - Apparel was holding an average PEG ratio of 2.06 at yesterday's closing price.

The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 206, placing it within the bottom 19% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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