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

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Crocs (CROX - Free Report) closed at $125.42 in the latest trading session, marking a +0.14% move from the prior day. The stock lagged the S&P 500's daily gain of 1.47%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 7.94%.

Heading into today, shares of the footwear company had gained 15.4% over the past month, lagging the Consumer Discretionary sector's gain of 16.41% and outpacing the S&P 500's gain of 7.41% 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 $2.18 per share. This would mark year-over-year growth of 1.4%. Meanwhile, our latest consensus estimate is calling for revenue of $937.91 million, up 59.88% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Crocs. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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 1.67% higher within the past month. Crocs is currently a Zacks Rank #3 (Hold).

In terms of valuation, Crocs is currently trading at a Forward P/E ratio of 11.72. For comparison, its industry has an average Forward P/E of 11.72, which means Crocs is trading at a no noticeable deviation to the group.

Investors should also note that CROX has a PEG ratio of 0.78 right now. 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 1.39 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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