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Are Investors Undervaluing Crocs (CROX) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Crocs (CROX - Free Report) . CROX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.58, which compares to its industry's average of 11.82. Over the past year, CROX's Forward P/E has been as high as 12.91 and as low as 6.24, with a median of 9.47.
Investors will also notice that CROX has a PEG ratio of 0.67. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CROX's industry currently sports an average PEG of 1.11. Over the past 52 weeks, CROX's PEG has been as high as 0.86 and as low as 0.42, with a median of 0.64.
Investors should also recognize that CROX has a P/B ratio of 5.02. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.86. Over the past 12 months, CROX's P/B has been as high as 10.61 and as low as 4.79, with a median of 8.30.
Finally, we should also recognize that CROX has a P/CF ratio of 8.45. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.87. Over the past 52 weeks, CROX's P/CF has been as high as 14.31 and as low as 7.06, with a median of 10.46.
If you're looking for another solid Textile - Apparel value stock, take a look at Guess (GES - Free Report) . GES is a # 1 (Strong Buy) stock with a Value score of A.
Furthermore, Guess holds a P/B ratio of 2.71 and its industry's price-to-book ratio is 5.86. GES's P/B has been as high as 2.74, as low as 1.71, with a median of 2.12 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Crocs and Guess are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CROX and GES feels like a great value stock at the moment.
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Are Investors Undervaluing Crocs (CROX) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Crocs (CROX - Free Report) . CROX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.58, which compares to its industry's average of 11.82. Over the past year, CROX's Forward P/E has been as high as 12.91 and as low as 6.24, with a median of 9.47.
Investors will also notice that CROX has a PEG ratio of 0.67. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CROX's industry currently sports an average PEG of 1.11. Over the past 52 weeks, CROX's PEG has been as high as 0.86 and as low as 0.42, with a median of 0.64.
Investors should also recognize that CROX has a P/B ratio of 5.02. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.86. Over the past 12 months, CROX's P/B has been as high as 10.61 and as low as 4.79, with a median of 8.30.
Finally, we should also recognize that CROX has a P/CF ratio of 8.45. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.87. Over the past 52 weeks, CROX's P/CF has been as high as 14.31 and as low as 7.06, with a median of 10.46.
If you're looking for another solid Textile - Apparel value stock, take a look at Guess (GES - Free Report) . GES is a # 1 (Strong Buy) stock with a Value score of A.
Furthermore, Guess holds a P/B ratio of 2.71 and its industry's price-to-book ratio is 5.86. GES's P/B has been as high as 2.74, as low as 1.71, with a median of 2.12 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Crocs and Guess are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CROX and GES feels like a great value stock at the moment.