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

·3 min read

In the latest trading session, Crocs (CROX) closed at $73.78, marking a -1.44% move from the previous day. This move lagged the S&P 500's daily loss of 1.1%. Meanwhile, the Dow lost 0.96%, and the Nasdaq, a tech-heavy index, lost 0.13%.

Heading into today, shares of the footwear company had gained 3.03% over the past month, outpacing the Consumer Discretionary sector's loss of 1.51% and the S&P 500's loss of 2.28% in that time.

Investors will be hoping for strength from Crocs as it approaches its next earnings release. In that report, analysts expect Crocs to post earnings of $2.58 per share. This would mark year-over-year growth of 4.45%. Our most recent consensus estimate is calling for quarterly revenue of $941.22 million, up 50.37% from the year-ago period.

CROX's full-year Zacks Consensus Estimates are calling for earnings of $10.06 per share and revenue of $3.47 billion. These results would represent year-over-year changes of +20.91% and +49.81%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team 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.

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. The Zacks Consensus EPS estimate has moved 4.04% lower within the past month. Crocs is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Crocs has a Forward P/E ratio of 7.44 right now. For comparison, its industry has an average Forward P/E of 10.79, which means Crocs is trading at a discount to the group.

Also, we should mention that CROX has a PEG ratio of 0.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Textile - Apparel was holding an average PEG ratio of 1.55 at yesterday's closing price.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 238, putting it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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