Crocs (CROX) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Crocs (CROX) closed at $110.57, marking a -1.79% move from the previous day. This change lagged the S&P 500's daily loss of 0.2%.
Coming into today, shares of the footwear company had gained 8.38% in the past month. In that same time, the Consumer Discretionary sector gained 1.59%, while the S&P 500 gained 2.11%.
Investors will be hoping for strength from CROX as it approaches its next earnings release. In that report, analysts expect CROX to post earnings of $1.50 per share. This would mark year-over-year growth of 48.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $554.13 million, up 67.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.68 per share and revenue of $2.04 billion. These totals would mark changes of +76.4% and +47.08%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CROX. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CROX currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note CROX's current valuation metrics, including its Forward P/E ratio of 19.83. Its industry sports an average Forward P/E of 19.83, so we one might conclude that CROX is trading at a no noticeable deviation comparatively.
It is also worth noting that CROX currently has a PEG ratio of 1.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Textile - Apparel industry currently had an average PEG ratio of 1.36 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% 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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