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Crocs (CROX) Gains But Lags Market: What You Should Know

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In the latest trading session, Crocs (CROX - Free Report) closed at $28.90, marking a +0.31% move from the previous day. This move lagged the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 0.75%, and the Nasdaq, a tech-heavy index, added 1.29%.

Coming into today, shares of the footwear company had gained 7.98% in the past month. In that same time, the Consumer Discretionary sector gained 14.05%, while the S&P 500 gained 12.44%.

Wall Street will be looking for positivity from CROX as it approaches its next earnings report date. This is expected to be February 27, 2019. In that report, analysts expect CROX to post earnings of -$0.22 per share. This would mark year-over-year growth of 46.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $213.40 million, up 7.18% from the year-ago period.

It is also important to note the recent changes to analyst estimates for CROX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. CROX is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, CROX is currently trading at a Forward P/E ratio of 27.35. For comparison, its industry has an average Forward P/E of 16.49, which means CROX is trading at a premium to the group.

Also, we should mention that CROX has a PEG ratio of 1.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Textile - Apparel industry currently had an average PEG ratio of 1.35 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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