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Crocs (CROX) Advances While Market Declines: Some Information for Investors

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Crocs (CROX - Free Report) closed at $78.99 in the latest trading session, marking a +1.82% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.13%. Meanwhile, the Dow experienced a drop of 0.27%, and the technology-dominated Nasdaq saw a decrease of 0.07%.

The footwear company's shares have seen a decrease of 6.39% over the last month, not keeping up with the Consumer Discretionary sector's gain of 1.44% and the S&P 500's gain of 2.71%.

The upcoming earnings release of Crocs will be of great interest to investors. The company is predicted to post an EPS of $2.38, indicating a 33.89% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $963.85 million, down 9.26% from the year-ago period.

CROX's full-year Zacks Consensus Estimates are calling for earnings of $11.55 per share and revenue of $3.99 billion. These results would represent year-over-year changes of -12.3% and -2.69%, respectively.

It is also important to note the recent changes to analyst estimates for Crocs. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. Crocs is currently sporting a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Crocs currently has a Forward P/E ratio of 6.71. This signifies a discount in comparison to the average Forward P/E of 15.86 for its industry.

Investors should also note that CROX has a PEG ratio of 1.79 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Textile - Apparel industry currently had an average PEG ratio of 2.36 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 189, placing it within the bottom 24% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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