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

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Crocs (CROX - Free Report) closed the most recent trading day at $54.99, moving +1.57% from the previous trading session. This change outpaced the S&P 500's 0.84% loss on the day. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.05%.

Heading into today, shares of the footwear company had gained 14.68% over the past month, outpacing the Consumer Discretionary sector's loss of 0.81% and the S&P 500's gain of 2.02% in that time.

Crocs will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.73, up 22.42% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $950.9 million, up 48.4% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.58 per share and revenue of $3.53 billion, which would represent changes of +27.16% and +52.58%, respectively, from the prior year.

Any recent changes to analyst estimates for Crocs should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.22% higher within the past month. Crocs is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note Crocs's current valuation metrics, including its Forward P/E ratio of 5.12. Its industry sports an average Forward P/E of 9.45, so we one might conclude that Crocs is trading at a discount comparatively.

We can also see that CROX currently has a PEG ratio of 0.34. 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. CROX's industry had an average PEG ratio of 1.25 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% 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.

To follow CROX in the coming trading sessions, be sure to utilize Zacks.com.


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