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Why Crocs (CROX) Dipped More Than Broader Market Today

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The latest trading session saw Crocs (CROX - Free Report) ending at $138.23, denoting a -0.84% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.18%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, added 0.27%.

The footwear company's stock has climbed by 0.25% in the past month, falling short of the Consumer Discretionary sector's gain of 8.02% and the S&P 500's gain of 4.46%.

The investment community will be closely monitoring the performance of Crocs in its forthcoming earnings report. The company is scheduled to release its earnings on October 29, 2024. The company's earnings per share (EPS) are projected to be $3.12, reflecting a 4% decrease from the same quarter last 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 $12.87 per share and revenue of $4.13 billion, indicating changes of +6.98% and +4.19%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Crocs. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, the Zacks Consensus EPS estimate has moved 0.17% higher. Currently, Crocs is carrying a Zacks Rank of #2 (Buy).

Digging into valuation, Crocs currently has a Forward P/E ratio of 10.83. For comparison, its industry has an average Forward P/E of 20.36, which means Crocs is trading at a discount to the group.

Investors should also note that CROX has a PEG ratio of 1.4 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Textile - Apparel stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.

The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 38% of all 250+ industries.

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

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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