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Crocs (CROX) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Crocs (CROX) closed at $31.63, marking a +1.43% move from the previous day. This move outpaced the S&P 500's daily gain of 1%.

Heading into today, shares of the footwear company had gained 9.79% over the past month, outpacing the Consumer Discretionary sector's loss of 4.24% and the S&P 500's loss of 1.22% in that time.

Wall Street will be looking for positivity from CROX as it approaches its next earnings report date. On that day, CROX is projected to report earnings of $0.41 per share, which would represent year-over-year growth of 485.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $302.57 million, up 15.9% from the year-ago period.

CROX's full-year Zacks Consensus Estimates are calling for earnings of $1.44 per share and revenue of $1.20 billion. These results would represent year-over-year changes of +67.44% and +10.47%, respectively.

Investors should also note any recent changes to analyst estimates for CROX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 2.5% higher. CROX is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, CROX is holding a Forward P/E ratio of 21.73. For comparison, its industry has an average Forward P/E of 14.71, which means CROX is trading at a premium to the group.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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