Crocs (CROX) Stock Sinks As Market Gains: What You Should Know
Crocs (CROX) closed at $125.59 in the latest trading session, marking a -0.88% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.12%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.54%.
The the stock of footwear company has risen by 15.1% in the past month, leading the Consumer Discretionary sector's gain of 1.03% and the S&P 500's gain of 2.06%.
The upcoming earnings release of Crocs will be of great interest to investors. The company is expected to report EPS of $2.25, down 13.79% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $879.86 million, down 0.49% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.38 per share and a revenue of $4.12 billion, indicating changes of +2.91% and +3.86%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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 company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 4.39% rise in the Zacks Consensus EPS estimate. Right now, Crocs possesses a Zacks Rank of #2 (Buy).
Looking at its valuation, Crocs is holding a Forward P/E ratio of 10.23. This represents a discount compared to its industry's average Forward P/E of 12.88.
Meanwhile, CROX's PEG ratio is currently 1.58. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Textile - Apparel industry held an average PEG ratio of 1.6.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% of all 250+ industries.
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.
To follow CROX in the coming trading sessions, be sure to utilize Zacks.com.
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Crocs, Inc. (CROX) : Free Stock Analysis Report
