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

Crocs (CROX) closed at $30.53 in the latest trading session, marking a +1.6% move from the prior day. This change outpaced the S&P 500's 0.22% gain on the day. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 0.16%.

Heading into today, shares of the footwear company had gained 19.44% over the past month, outpacing the Consumer Discretionary sector's gain of 2.76% and the S&P 500's gain of 0.49% in that time.

Investors will be hoping for strength from CROX as it approaches its next earnings release, which is expected to be February 27, 2019. On that day, CROX is projected to report earnings of -$0.25 per share, which would represent year-over-year growth of 39.02%. Meanwhile, our latest consensus estimate is calling for revenue of $199.75 million, up 0.32% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for CROX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. CROX is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, CROX currently has a Forward P/E ratio of 28.53. Its industry sports an average Forward P/E of 15.59, so we one might conclude that CROX is trading at a premium comparatively.

Also, we should mention that CROX has a PEG ratio of 1.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 26% 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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