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Should Value Investors Buy Crocs (CROX) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Crocs (CROX - Free Report) . CROX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.13, while its industry has an average P/E of 13.22. Over the past year, CROX's Forward P/E has been as high as 12.14 and as low as 6.18, with a median of 9.81.

Investors should also recognize that CROX has a P/B ratio of 5.01. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 7.38. Over the past year, CROX's P/B has been as high as 6.07 and as low as 3.60, with a median of 4.93.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Crocs is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CROX feels like a great value stock at the moment.


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