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

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In the latest trading session, Crocs (CROX - Free Report) closed at $107.06, marking a -1.4% move from the previous day. This change lagged the S&P 500's 0.37% gain on the day. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 1.26%.

Heading into today, shares of the footwear company had gained 4.31% over the past month, outpacing the Consumer Discretionary sector's gain of 1.44% and trading in line with the S&P 500.

Crocs will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.95, down 8.95% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.04 billion, up 8.2% from the year-ago period.

CROX's full-year Zacks Consensus Estimates are calling for earnings of $11.53 per share and revenue of $4.02 billion. These results would represent year-over-year changes of +5.59% and +13.11%, respectively.

Any recent changes to analyst estimates for Crocs should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. Crocs is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Crocs currently has a Forward P/E ratio of 9.42. For comparison, its industry has an average Forward P/E of 9.86, which means Crocs is trading at a discount to the group.

It is also worth noting that CROX currently has a PEG ratio of 0.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Textile - Apparel was holding an average PEG ratio of 1.12 at yesterday's closing price.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% 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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