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Should Value Investors Buy Crocs (CROX) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality 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), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.75, which compares to its industry's average of 11.30. Over the past year, CROX's Forward P/E has been as high as 12.91 and as low as 4.25, with a median of 9.04.

Investors should also note that CROX holds a PEG ratio of 0.58. 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 1.09. Over the last 12 months, CROX's PEG has been as high as 0.86 and as low as 0.28, with a median of 0.61.

Finally, investors should note that CROX has a P/CF ratio of 10.04. 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 current P/CF looks attractive when compared to its industry's average P/CF of 27.68. Over the past 52 weeks, CROX's P/CF has been as high as 14.31 and as low as 3.97, with a median of 10.21.

Investors could also keep in mind GIII Apparel Group (GIII - Free Report) , an Textile - Apparel stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Shares of GIII Apparel Group are currently trading at a forward earnings multiple of 6.59 and a PEG ratio of 0.44 compared to its industry's P/E and PEG ratios of 11.30 and 1.09, respectively.

Over the past year, GIII's P/E has been as high as 7.73, as low as 3.01, with a median of 4.80; its PEG ratio has been as high as 0.52, as low as 0.20, with a median of 0.61 during the same time period.

GIII Apparel Group also has a P/B ratio of 0.64 compared to its industry's price-to-book ratio of 6.32. Over the past year, its P/B ratio has been as high as 0.76, as low as 0.35, with a median of 0.55.

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


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