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Crocs (CROX) Suffers a Larger Drop Than the General Market: Key Insights

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The most recent trading session ended with Crocs (CROX - Free Report) standing at $87.52, reflecting a -1.84% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 1.43% for the day. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 2.43%.

Coming into today, shares of the footwear company had gained 6.32% in the past month. In that same time, the Consumer Discretionary sector gained 0.12%, while the S&P 500 lost 1.55%.

The investment community will be paying close attention to the earnings performance of Crocs in its upcoming release. The company is slated to reveal its earnings on November 2, 2023. The company is forecasted to report an EPS of $3.09, showcasing a 4.04% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.03 billion, up 4.27% from the year-ago period.

CROX's full-year Zacks Consensus Estimates are calling for earnings of $12.09 per share and revenue of $4.01 billion. These results would represent year-over-year changes of +10.71% and +12.73%, respectively.

Any recent changes to analyst estimates for Crocs should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% lower. Crocs currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Crocs is presently being traded at a Forward P/E ratio of 7.37. Its industry sports an average Forward P/E of 13.51, so one might conclude that Crocs is trading at a discount comparatively.

The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 210, positioning it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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