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Are Investors Undervaluing Crocs (CROX) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Crocs (CROX - Free Report) . CROX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 4.32, which compares to its industry's average of 9.77. Over the past 52 weeks, CROX's Forward P/E has been as high as 21.58 and as low as 4.20, with a median of 14.11.

Finally, investors will want to recognize that CROX has a P/CF ratio of 4.05. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.40. Within the past 12 months, CROX's P/CF has been as high as 18.02 and as low as 3.93, with a median of 10.31.

GIII Apparel Group (GIII - Free Report) may be another strong Textile - Apparel stock to add to your shortlist. GIII is a # 1 (Strong Buy) stock with a Value grade of A.

GIII Apparel Group is currently trading with a Forward P/E ratio of 4.41 while its PEG ratio sits at 0.48. Both of the company's metrics compare favorably to its industry's average P/E of 9.77 and average PEG ratio of 0.90.

GIII's price-to-earnings ratio has been as high as 11.53 and as low as 4.41, with a median of 7.48, while its PEG ratio has been as high as 1.12 and as low as 0.45, with a median of 0.73, all within the past year.

GIII Apparel Group sports a P/B ratio of 0.63 as well; this compares to its industry's price-to-book ratio of 5.65. In the past 52 weeks, GIII's P/B has been as high as 1.17, as low as 0.63, with a median of 0.92.

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


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