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Crocs (CROX) Stock Sinks As Market Gains: Here's Why

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Crocs (CROX - Free Report) closed the latest trading day at $155.64, indicating a -0.21% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.8%. Elsewhere, the Dow gained 1.51%, while the tech-heavy Nasdaq lost 0.01%.

Shares of the footwear company have appreciated by 23.1% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 2.49% and the S&P 500's gain of 4.14%.

Market participants will be closely following the financial results of Crocs in its upcoming release. The company is forecasted to report an EPS of $3.51, showcasing a 2.23% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.1 billion, showing a 2.77% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.66 per share and a revenue of $4.13 billion, indicating changes of +5.24% and +4.35%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Crocs. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.62% higher. At present, Crocs boasts a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Crocs has a Forward P/E ratio of 12.32 right now. This signifies a discount in comparison to the average Forward P/E of 14.56 for its industry.

We can also see that CROX currently has a PEG ratio of 1.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Textile - Apparel industry was having an average PEG ratio of 1.7.

The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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