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

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In the latest trading session, Crocs (CROX - Free Report) closed at $141.53, marking a +1.85% move from the previous day. This move outpaced the S&P 500's daily loss of 0.46%.

Coming into today, shares of the footwear company had lost 2.28% in the past month. In that same time, the Consumer Discretionary sector gained 1.86%, while the S&P 500 gained 1.93%.

Investors will be hoping for strength from CROX as it approaches its next earnings release. In that report, analysts expect CROX to post earnings of $1.80 per share. This would mark year-over-year growth of 91.49%. Our most recent consensus estimate is calling for quarterly revenue of $612.07 million, up 69.2% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.78 per share and revenue of $2.27 billion, which would represent changes of +110.56% and +63.62%, respectively, from the prior year.

Any recent changes to analyst estimates for CROX should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant. CROX is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that CROX has a Forward P/E ratio of 20.5 right now. This represents a premium compared to its industry's average Forward P/E of 15.77.

It is also worth noting that CROX currently has a PEG ratio of 1.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Textile - Apparel was holding an average PEG ratio of 1.05 at yesterday's closing price.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 12, putting it in the top 5% 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.

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