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

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Crocs (CROX - Free Report) closed at $92.75 in the latest trading session, marking a -0.66% move from the prior day. This change lagged the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 1.14%.

Coming into today, shares of the footwear company had lost 7.18% in the past month. In that same time, the Consumer Discretionary sector lost 5.9%, while the S&P 500 lost 0.73%.

Wall Street will be looking for positivity from Crocs as it approaches its next earnings report date. In that report, analysts expect Crocs to post earnings of $3.09 per share. This would mark year-over-year growth of 4.04%. Meanwhile, our latest consensus estimate is calling for revenue of $1.03 billion, up 4.36% from the prior-year quarter.

CROX's full-year Zacks Consensus Estimates are calling for earnings of $12.10 per share and revenue of $4.01 billion. These results would represent year-over-year changes of +10.81% and +12.86%, respectively.

It is also important to note the recent changes to analyst estimates for Crocs. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 0.42% lower. Crocs currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Crocs is holding a Forward P/E ratio of 7.72. Its industry sports an average Forward P/E of 11.61, so we one might conclude that Crocs is trading at a discount comparatively.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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