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Crocs (CROX) Outpaces Stock Market Gains: What You Should Know

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Crocs (CROX - Free Report) closed the latest trading day at $131.71, indicating a +1.35% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 0.39%.

Prior to today's trading, shares of the footwear company had gained 9.23% over the past month. This has outpaced the Consumer Discretionary sector's gain of 0.27% and the S&P 500's gain of 2.97% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Crocs in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.25, indicating a 13.79% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $879.86 million, indicating a 0.49% decrease compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.38 per share and revenue of $4.12 billion, indicating changes of +2.91% and +3.86%, respectively, compared to the previous year.

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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Crocs presently features a Zacks Rank of #2 (Buy).

Looking at its valuation, Crocs is holding a Forward P/E ratio of 10.5. This denotes a discount relative to the industry's average Forward P/E of 12.7.

One should further note that CROX currently holds a PEG ratio of 1.62. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.6 based on yesterday's closing prices.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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