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Crocs (CROX) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Crocs (CROX - Free Report) closed at $128.37, marking a -1.22% move from the previous day. This move lagged the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.33%.

Prior to today's trading, shares of the footwear company had lost 20.15% over the past month. This has lagged the Consumer Discretionary sector's loss of 1.32% and the S&P 500's gain of 3.11% in that time.

Wall Street will be looking for positivity from Crocs as it approaches its next earnings report date. In that report, analysts expect Crocs to post earnings of $1.38 per share. This would mark year-over-year growth of 30.19%. Our most recent consensus estimate is calling for quarterly revenue of $554.03 million, up 34.63% from the year-ago period.

CROX's full-year Zacks Consensus Estimates are calling for earnings of $7.59 per share and revenue of $2.28 billion. These results would represent year-over-year changes of +135.71% and +64.57%, respectively.

Any recent changes to analyst estimates for Crocs should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Crocs currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Crocs currently has a Forward P/E ratio of 17.13. This valuation marks a premium compared to its industry's average Forward P/E of 16.01.

It is also worth noting that CROX currently has a PEG ratio of 1.14. 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 37, which puts it in the top 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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