Crocs (CROX) Registers a Bigger Fall Than the Market: Important Facts to Note

Crocs (CROX) closed at $108.83 in the latest trading session, marking a -2.03% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.59%. Elsewhere, the Dow saw a downswing of 0.6%, while the tech-heavy Nasdaq depreciated by 0.65%.

Coming into today, shares of the footwear company had lost 14.95% in the past month. In that same time, the Consumer Discretionary sector lost 5.04%, while the S&P 500 lost 1.37%.

The upcoming earnings release of Crocs will be of great interest to investors. In that report, analysts expect Crocs to post earnings of $3.3 per share. This would mark year-over-year growth of 13.01%. Our most recent consensus estimate is calling for quarterly revenue of $1 billion, up 0.72% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $13.95 per share and a revenue of $4.1 billion, demonstrating changes of +11.51% and +1.4%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Crocs. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Crocs currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Crocs is at present trading with a Forward P/E ratio of 7.96. For comparison, its industry has an average Forward P/E of 15.35, which means Crocs is trading at a discount to the group.

Also, we should mention that CROX has a PEG ratio of 0.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. CROX's industry had an average PEG ratio of 1.86 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 178, placing it within the bottom 28% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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