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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Crocs (CROX - Free Report) . CROX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.77, while its industry has an average P/E of 13.02. Over the last 12 months, CROX's Forward P/E has been as high as 12.14 and as low as 6.18, with a median of 9.70.
Investors should also recognize that CROX has a P/B ratio of 5.29. 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 attractive against its industry's average P/B of 7.44. Over the past year, CROX's P/B has been as high as 6.07 and as low as 3.60, with a median of 4.88.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Crocs is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CROX 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Crocs (CROX - Free Report) . CROX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.77, while its industry has an average P/E of 13.02. Over the last 12 months, CROX's Forward P/E has been as high as 12.14 and as low as 6.18, with a median of 9.70.
Investors should also recognize that CROX has a P/B ratio of 5.29. 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 attractive against its industry's average P/B of 7.44. Over the past year, CROX's P/B has been as high as 6.07 and as low as 3.60, with a median of 4.88.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Crocs is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CROX feels like a great value stock at the moment.