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Crocs (CROX) Suffers a Larger Drop Than the General Market: Key Insights

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Crocs (CROX - Free Report) closed at $104.90 in the latest trading session, marking a -0.25% move from the prior day. This move lagged the S&P 500's daily loss of 0.07%.

Coming into today, shares of the footwear company had lost 1.54% in the past month. In that same time, the Consumer Discretionary sector gained 1.29%, while the S&P 500 gained 3.98%.

Analysts and investors alike will be keeping a close eye on the performance of Crocs in its upcoming earnings disclosure. In that report, analysts expect Crocs to post earnings of $2.40 per share. This would mark a year-over-year decline of 9.43%. Simultaneously, our latest consensus estimate expects the revenue to be $956.95 million, showing a 1.25% escalation compared to the year-ago quarter.

It's also important for investors to be aware of any recent modifications to analyst estimates for Crocs. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, there's been a 0.39% fall in the Zacks Consensus EPS estimate. Crocs is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Crocs is presently trading at a Forward P/E ratio of 8.71. This represents a discount compared to its industry's average Forward P/E of 14.48.

Investors should also note that CROX has a PEG ratio of 1.35 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Textile - Apparel industry had an average PEG ratio of 1.52 as trading concluded yesterday.

The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 198, positioning it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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