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Crocs (CROX) Dips More Than Broader Markets: What You Should Know

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Crocs (CROX - Free Report) closed the most recent trading day at $87.94, moving -1.94% from the previous trading session. This move lagged the S&P 500's daily loss of 0.94%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 1.53%.

Coming into today, shares of the footwear company had lost 8.96% in the past month. In that same time, the Consumer Discretionary sector lost 2.09%, while the S&P 500 gained 1.85%.

Wall Street will be looking for positivity from Crocs as it approaches its next earnings report date. On that day, Crocs is projected to report earnings of $3.09 per share, which would represent year-over-year growth of 4.04%. Our most recent consensus estimate is calling for quarterly revenue of $1.03 billion, up 4.27% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.10 per share and revenue of $4.01 billion, which would represent changes of +10.81% and +12.76%, respectively, from the prior year.

Any recent changes to analyst estimates for Crocs should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.32% lower. Crocs is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Crocs is currently trading at a Forward P/E ratio of 7.41. This valuation marks a discount compared to its industry's average Forward P/E of 11.41.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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