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

Zacks Equity Research
·3-min read

In the latest trading session, Crocs (CROX) closed at $79.04, marking a +0.82% move from the previous day. This move outpaced the S&P 500's daily gain of 0.36%.

Prior to today's trading, shares of the footwear company had lost 1.68% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 8.01% and lagged the S&P 500's gain of 5.21% in that time.

CROX will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2021. The company is expected to report EPS of $0.86, up 290.91% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $414.52 million, up 47.43% from the prior-year quarter.

CROX's full-year Zacks Consensus Estimates are calling for earnings of $3.89 per share and revenue of $1.72 billion. These results would represent year-over-year changes of +20.81% and +24.33%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. CROX is currently a Zacks Rank #2 (Buy).

Investors should also note CROX's current valuation metrics, including its Forward P/E ratio of 20.63. For comparison, its industry has an average Forward P/E of 21.97, which means CROX is trading at a discount to the group.

Also, we should mention that CROX has a PEG ratio of 1.38. 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. The Textile - Apparel was holding an average PEG ratio of 2.38 at yesterday's closing price.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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