Crocs (CROX) stock ended the trading session at $137.92, marking a 1.35% decline from the previous day. While the broader market saw positive gains, with the S&P 500 gaining 1.7%, the Dow rising 1.26%, and the Nasdaq soaring 2.51%, Crocs’ performance lagged behind. Over the past month, the stock has experienced a slight dip of 0.56%.
Despite this recent performance, the investment community is closely watching Crocs’ upcoming earnings report. Analysts project earnings per share of $3.11, representing a 4.31% decrease from the same period last year. However, they anticipate revenue to reach $1.05 billion, indicating a modest 0.08% increase compared to the same quarter in the previous year.
Looking forward, Zacks Consensus Estimates predict full-year earnings of $12.85 per share and revenue of $4.12 billion. This would translate to a 6.82% and 4% increase respectively, year-on-year. It’s crucial for investors to monitor any changes in analyst projections for Crocs, as these revisions often reflect the latest business trends. Positive revisions indicate analysts’ confidence in the company’s future performance and profitability.
Zacks Rank, a proprietary model developed by Zacks, considers these estimate revisions and assigns an actionable rating system, ranging from #1 (Strong Buy) to #5 (Strong Sell). This system has a proven track record, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate for Crocs has moved 0.11% higher, and the company currently holds a Zacks Rank of #2 (Buy).
In terms of valuation, Crocs trades at a Forward P/E ratio of 10.88. This indicates a discount relative to the industry’s average Forward P/E of 19.27. Additionally, CROX boasts a PEG ratio of 1.4, which factors in the company’s projected earnings growth. For comparison, the Textile – Apparel industry, which Crocs belongs to, had an average PEG ratio of 2.01 as of yesterday’s close.
The Textile – Apparel industry currently holds a Zacks Industry Rank of 171, placing it within the bottom 33% of over 250 industries. This ranking reflects the strength of industry groups based on the average Zacks Rank of individual stocks within them. Research suggests that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
