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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 $76.15, marking a -1.63% move from the previous day. This change lagged the S&P 500's daily loss of 0.72%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.27%.

Heading into today, shares of the footwear company had gained 0.64% over the past month, outpacing the Consumer Discretionary sector's loss of 9.31% and the S&P 500's loss of 9.06% in that time.

Crocs will be looking to display strength as it nears its next earnings release. In that report, analysts expect Crocs to post earnings of $2.57 per share. This would mark year-over-year growth of 4.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $942.24 million, up 50.54% from the year-ago period.

CROX's full-year Zacks Consensus Estimates are calling for earnings of $10.04 per share and revenue of $3.46 billion. These results would represent year-over-year changes of +20.67% and +49.73%, respectively.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.16% lower within the past month. Crocs is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Crocs currently has a Forward P/E ratio of 7.71. This valuation marks a discount compared to its industry's average Forward P/E of 10.3.

Also, we should mention that CROX has a PEG ratio of 0.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CROX's industry had an average PEG ratio of 1.72 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 234, putting it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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