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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.

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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is Crocs (CROX - Free Report) . CROX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.30 right now. For comparison, its industry sports an average P/E of 13.22. CROX's Forward P/E has been as high as 18.03 and as low as 4.20, with a median of 7.23, all within the past year.

Investors should also note that CROX holds a PEG ratio of 0.62. 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 1.68. CROX's PEG has been as high as 1.16 and as low as 0.28, with a median of 0.48, all within the past year.

Finally, investors should note that CROX has a P/CF ratio of 10.50. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CROX's P/CF compares to its industry's average P/CF of 20.31. Within the past 12 months, CROX's P/CF has been as high as 13.46 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.

Shares of PVH are currently trading at a forward earnings multiple of 8.71 and a PEG ratio of 0.92 compared to its industry's P/E and PEG ratios of 13.22 and 1.68, respectively.

PVH's price-to-earnings ratio has been as high as 11.17 and as low as 5.38, with a median of 7.32, while its PEG ratio has been as high as 7.08 and as low as 0.12, with a median of 0.65, all within the past year.

Additionally, PVH has a P/B ratio of 0.92 while its industry's price-to-book ratio sits at 7.19. For PVH, this valuation metric has been as high as 1.53, as low as 0.56, with a median of 0.86 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Crocs and PVH are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CROX and PVH feels like a great value stock at the moment.


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