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Should Value Investors Buy Crocs (CROX) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Crocs (CROX - Free Report) . CROX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.04 right now. For comparison, its industry sports an average P/E of 12.53. Over the past year, CROX's Forward P/E has been as high as 19.77 and as low as 4.20, with a median of 7.23.

Investors will also notice that CROX has a PEG ratio of 0.60. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CROX's industry currently sports an average PEG of 1.59. Over the past 52 weeks, CROX's PEG has been as high as 1.16 and as low as 0.28, with a median of 0.47.

Finally, investors should note that CROX has a P/CF ratio of 10.18. 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. CROX's P/CF compares to its industry's average P/CF of 19.22. 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 7.69.

Investors could also keep in mind PVH (PVH - Free Report) , an Textile - Apparel stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

PVH is trading at a forward earnings multiple of 7.34 at the moment, with a PEG ratio of 0.77. This compares to its industry's average P/E of 12.53 and average PEG ratio of 1.59.

Over the last 12 months, PVH's P/E has been as high as 12.97, as low as 5.38, with a median of 7.35, and its PEG ratio has been as high as 7.08, as low as 0.12, with a median of 0.63.

PVH sports a P/B ratio of 0.77 as well; this compares to its industry's price-to-book ratio of 6.81. In the past 52 weeks, PVH's P/B has been as high as 1.69, as low as 0.56, with a median of 0.91.

These are only a few of the key metrics included in Crocs and PVH 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 PVH look like an impressive value stock at the moment.


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