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Crocs (CROX) Declines More Than Market: Some Information for Investors

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In the latest trading session, Crocs (CROX - Free Report) closed at $98.52, marking a -1.61% move from the previous day. This change lagged the S&P 500's 0.22% loss on the day. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 0.51%.

The footwear company's stock has dropped by 10.1% in the past month, falling short of the Consumer Discretionary sector's loss of 0.1% and the S&P 500's gain of 0.45%.

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 $4.06, reflecting a 1.25% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.14 billion, showing a 2.91% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.9 per share and a revenue of $4.14 billion, indicating changes of -2.05% and +0.84%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Crocs. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Crocs currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Crocs is currently trading at a Forward P/E ratio of 7.76. This valuation marks a discount compared to its industry average Forward P/E of 13.65.

We can additionally observe that CROX currently boasts a PEG ratio of 2.51. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Textile - Apparel industry was having an average PEG ratio of 1.98.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 16% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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