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Crocs (CROX) Gains But Lags Market: What You Should Know

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Crocs (CROX - Free Report) closed at $122.40 in the latest trading session, marking a +0.8% move from the prior day. This change lagged the S&P 500's 1.89% gain on the day. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 10%.

Coming into today, shares of the footwear company had gained 18.53% in the past month. In that same time, the Consumer Discretionary sector gained 11.35%, while the S&P 500 gained 2.3%.

Investors will be hoping for strength from Crocs as it approaches its next earnings release. The company is expected to report EPS of $2.15, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $938.51 million, up 59.98% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Crocs. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. Crocs is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Crocs currently has a Forward P/E ratio of 11.38. For comparison, its industry has an average Forward P/E of 11.38, which means Crocs is trading at a no noticeable deviation to the group.

We can also see that CROX currently has a PEG ratio of 0.76. 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. The Textile - Apparel industry currently had an average PEG ratio of 1.55 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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