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Crocs (CROX) Stock Dips While Market Gains: Key Facts

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In the latest close session, Crocs (CROX - Free Report) was down 1.67% at $104.75. This move lagged the S&P 500's daily gain of 0.61%. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.95%.

The footwear company's shares have seen an increase of 1.31% over the last month, not keeping up with the Consumer Discretionary sector's gain of 5.12% and the S&P 500's gain of 3.85%.

The investment community will be closely monitoring the performance of Crocs in its forthcoming earnings report. The company is expected to report EPS of $4.03, up 0.5% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.14 billion, reflecting a 2.91% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.8 per share and a revenue of $4.14 billion, indicating changes of -2.81% and +0.84%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Crocs. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 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 has moved 0.76% lower. Crocs is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Crocs has a Forward P/E ratio of 8.32 right now. This signifies a discount in comparison to the average Forward P/E of 14.43 for its industry.

One should further note that CROX currently holds a PEG ratio of 2.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Textile - Apparel industry had an average PEG ratio of 2.1 as trading concluded yesterday.

The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 231, this industry ranks in the bottom 7% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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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