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Crocs (CROX) Dips More Than Broader Market: What You Should Know

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Crocs (CROX - Free Report) closed at $85.50 in the latest trading session, marking a -4.02% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.34%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw an increase of 0.16%.

Shares of the footwear company have appreciated by 3.92% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 1.44%, and the S&P 500's gain of 1.19%.

The upcoming earnings release of Crocs will be of great interest to investors. The company is forecasted to report an EPS of $1.91, showcasing a 24.21% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $918.53 million, indicating a 7.2% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.13 per share and a revenue of $4 billion, signifying shifts of -7.9% and 0%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Crocs. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 past month, the Zacks Consensus EPS estimate remained stagnant. Crocs presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Crocs has a Forward P/E ratio of 7.07 right now. This indicates a discount in contrast to its industry's Forward P/E of 16.68.

The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.

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.

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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