Crocs (CROX) Stock Jumps 20.3%: Will It Continue to Soar?
Crocs (CROX) shares soared 20.3% in the last trading session to close at $104.03. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.7% loss over the past four weeks.
The Crocs stock moved higher after the company raised its guidance for fourth quarter and 2023 on robust holiday season performance. The company noted that the holiday season gained from market share gains across both brands. CROX now envisions fourth quarter revenues to increase more than 1% year over year, compared with a decline of 1-4% mentioned earlier. It estimates the Crocs brand to deliver revenue growth of almost 10%, while revenues for HEYDUDE are expected to decline 19%, up versus the prior view.
The company anticipates revenues to increase more than 11% year over year, marking a slight increase from 10-11% growth estimated earlier. It expects revenues for the Crocs brand to grow more than 13% year over year, exceeding the $3 billion mark. HEYDUDE revenues are expected to be $949 million. The company also outlined initial view for 2024, predicting revenue growth of 3-5%, including 4-6% growth for the Crocs brand and flat to slightly up revenues for HEYDUDE.
This footwear company is expected to post quarterly earnings of $2.30 per share in its upcoming report, which represents a year-over-year change of -13.2%. Revenues are expected to be $924.59 million, down 2.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Crocs, the consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CROX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Crocs belongs to the Zacks Textile - Apparel industry. Another stock from the same industry, Ralph Lauren (RL), closed the last trading session 1.7% higher at $145.30. Over the past month, RL has returned 8.5%.
Ralph Lauren's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $3.47. Compared to the company's year-ago EPS, this represents a change of +3.6%. Ralph Lauren currently boasts a Zacks Rank of #3 (Hold).
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