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Crocs (CROX) Outperforms Broader Market: What You Need to Know

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Crocs (CROX - Free Report) closed the latest trading day at $129.41, indicating a +0.87% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.74% for the day. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw an increase of 1.68%.

The the stock of footwear company has fallen by 0.8% in the past month, leading the Consumer Discretionary sector's loss of 2.3% and undershooting the S&P 500's gain of 0.8%.

The investment community will be paying close attention to the earnings performance of Crocs in its upcoming release. The company's earnings per share (EPS) are projected to be $2.25, reflecting a 13.79% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $879.86 million, indicating a 0.49% downward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.39 per share and a revenue of $4.12 billion, representing changes of +2.99% and +3.86%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Crocs. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.11% increase. Crocs currently has a Zacks Rank of #2 (Buy).

From a valuation perspective, Crocs is currently exchanging hands at a Forward P/E ratio of 10.35. Its industry sports an average Forward P/E of 11.47, so one might conclude that Crocs is trading at a discount comparatively.

Meanwhile, CROX's PEG ratio is currently 1.63. 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. The Textile - Apparel industry currently had an average PEG ratio of 1.43 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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