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Are Investors Undervaluing Crocs (CROX) Right Now?
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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 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 is trading with P/E ratio of 8.67 right now. For comparison, its industry sports an average P/E of 10.99. Over the past year, CROX's Forward P/E has been as high as 12.91 and as low as 4.20, with a median of 8.76.
Investors will also notice that CROX has a PEG ratio of 0.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CROX's PEG compares to its industry's average PEG of 1.52. Within the past year, CROX's PEG has been as high as 0.86 and as low as 0.28, with a median of 0.59.
Finally, investors should note that CROX has a P/CF ratio of 9.86. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 22.10. Within the past 12 months, CROX's P/CF has been as high as 14.31 and as low as 3.93, with a median of 9.89.
If you're looking for another solid Textile - Apparel value stock, take a look at Guess (GES - Free Report) . GES is a # 2 (Buy) stock with a Value score of A.
Guess also has a P/B ratio of 1.69 compared to its industry's price-to-book ratio of 6.01. Over the past year, its P/B ratio has been as high as 2.90, as low as 1.69, with a median of 2.19.
Value investors will likely look at more than just these metrics, but the above data helps show that Crocs and Guess are likely undervalued currently. And when considering the strength of its earnings outlook, CROX and GES sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Crocs (CROX) Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 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 is trading with P/E ratio of 8.67 right now. For comparison, its industry sports an average P/E of 10.99. Over the past year, CROX's Forward P/E has been as high as 12.91 and as low as 4.20, with a median of 8.76.
Investors will also notice that CROX has a PEG ratio of 0.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CROX's PEG compares to its industry's average PEG of 1.52. Within the past year, CROX's PEG has been as high as 0.86 and as low as 0.28, with a median of 0.59.
Finally, investors should note that CROX has a P/CF ratio of 9.86. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 22.10. Within the past 12 months, CROX's P/CF has been as high as 14.31 and as low as 3.93, with a median of 9.89.
If you're looking for another solid Textile - Apparel value stock, take a look at Guess (GES - Free Report) . GES is a # 2 (Buy) stock with a Value score of A.
Guess also has a P/B ratio of 1.69 compared to its industry's price-to-book ratio of 6.01. Over the past year, its P/B ratio has been as high as 2.90, as low as 1.69, with a median of 2.19.
Value investors will likely look at more than just these metrics, but the above data helps show that Crocs and Guess are likely undervalued currently. And when considering the strength of its earnings outlook, CROX and GES sticks out as one of the market's strongest value stocks.