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Is Crocs (CROX) Stock Undervalued 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on 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 has a Forward P/E ratio of 7.83. This compares to its industry's average Forward P/E of 12.24. Over the last 12 months, CROX's Forward P/E has been as high as 12.91 and as low as 6.24, with a median of 9.47.

Investors will also notice that CROX has a PEG ratio of 0.67. 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 1.14. CROX's PEG has been as high as 0.86 and as low as 0.42, with a median of 0.64, all within the past year.

Investors should also recognize that CROX has a P/B ratio of 5.14. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.01. Over the past 12 months, CROX's P/B has been as high as 10.61 and as low as 5.14, with a median of 8.70.

Finally, investors should note that CROX has a P/CF ratio of 8.66. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CROX's current P/CF looks attractive when compared to its industry's average P/CF of 21.50. Over the past 52 weeks, CROX's P/CF has been as high as 14.31 and as low as 7.06, with a median of 10.46.

GIII Apparel Group (GIII - Free Report) may be another strong Textile - Apparel stock to add to your shortlist. GIII is a # 2 (Buy) stock with a Value grade of A.

GIII Apparel Group is currently trading with a Forward P/E ratio of 7.05 while its PEG ratio sits at 0.47. Both of the company's metrics compare favorably to its industry's average P/E of 12.24 and average PEG ratio of 1.14.

Over the past year, GIII's P/E has been as high as 7.73, as low as 3.01, with a median of 4.98; its PEG ratio has been as high as 0.52, as low as 0.20, with a median of 0.64 during the same time period.

Additionally, GIII Apparel Group has a P/B ratio of 0.69 while its industry's price-to-book ratio sits at 6.01. For GIII, this valuation metric has been as high as 0.76, as low as 0.35, with a median of 0.55 over the past year.

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


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