Crocs (CROX) Advances But Underperforms Market: Key Facts
The most recent trading session ended with Crocs (CROX) standing at $101.35, reflecting a +0.85% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 1.23% for the day. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 1.7%.
The footwear company's stock has dropped by 1.79% in the past month, exceeding the Consumer Discretionary sector's loss of 2.56% and lagging the S&P 500's gain of 0.94%.
The investment community will be paying close attention to the earnings performance of Crocs in its upcoming release. The company is forecasted to report an EPS of $2.42, showcasing an 8.68% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $956.18 million, up 1.17% from the year-ago period.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.3% downward. At present, Crocs boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Crocs is presently trading at a Forward P/E ratio of 8.43. This signifies a discount in comparison to the average Forward P/E of 12.41 for its industry.
We can also see that CROX currently has a PEG ratio of 1.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CROX's industry had an average PEG ratio of 1.54 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 176, finds itself in the bottom 31% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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Crocs, Inc. (CROX) : Free Stock Analysis Report
