Is Crocs (CROX) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Crocs (CROX). CROX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.06. This compares to its industry's average Forward P/E of 13.32. Over the past year, CROX's Forward P/E has been as high as 12.07 and as low as 4.20, with a median of 7.23.
Investors should also note that CROX holds a PEG ratio of 0.80. 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. CROX's PEG compares to its industry's average PEG of 1.90. Over the past 52 weeks, CROX's PEG has been as high as 0.80 and as low as 0.28, with a median of 0.48.
Finally, investors should note that CROX has a P/CF ratio of 14.18. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.45. CROX's P/CF has been as high as 14.18 and as low as 3.93, with a median of 7.73, all within the past year.
Investors could also keep in mind Oxford Industries (OXM), an Textile - Apparel stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Oxford Industries also has a P/B ratio of 3.51 compared to its industry's price-to-book ratio of 6.88. Over the past year, its P/B ratio has been as high as 3.60, as low as 2.53, with a median of 2.94.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Crocs and Oxford Industries are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CROX and OXM feels like a great value stock at the moment.
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Crocs, Inc. (CROX) : Free Stock Analysis Report
Oxford Industries, Inc. (OXM) : Free Stock Analysis Report
