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Should Value Investors Buy Crocs (CROX) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice 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 7.22, while its industry has an average P/E of 10.28. Over the past 52 weeks, CROX's Forward P/E has been as high as 19.80 and as low as 4.20, with a median of 7.29.

We also note that CROX holds a PEG ratio of 0.48. 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. CROX's PEG compares to its industry's average PEG of 1.04. Within the past year, CROX's PEG has been as high as 1.16 and as low as 0.28, with a median of 0.47.

Finally, investors will want to recognize that CROX has a P/CF ratio of 8.25. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.12. Over the past year, CROX's P/CF has been as high as 14.56 and as low as 3.93, with a median of 7.76.

If you're looking for another solid Textile - Apparel value stock, take a look at Oxford Industries (OXM - Free Report) . OXM is a # 1 (Strong Buy) stock with a Value score of A.

Furthermore, Oxford Industries holds a P/B ratio of 2.69 and its industry's price-to-book ratio is 5.71. OXM's P/B has been as high as 3.71, as low as 2.53, with a median of 2.99 over the past 12 months.

These are only a few of the key metrics included in Crocs and Oxford Industries strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CROX and OXM look like an impressive value stock at the moment.


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