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Is Crocs (CROX) Stock Outpacing Its Consumer Discretionary Peers This Year?

Zacks Equity Research
·2-min read

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Crocs (CROX) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.

Crocs is one of 276 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Crocs is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for CROX's full-year earnings has moved 16.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

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Based on the latest available data, CROX has gained about 5.2% so far this year. Meanwhile, the Consumer Discretionary sector has returned an average of -2.5% on a year-to-date basis. This means that Crocs is outperforming the sector as a whole this year.

Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Manchester United (MANU). The stock has returned 3% year-to-date.

For Manchester United, the consensus EPS estimate for the current year has increased 30.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Crocs belongs to the Textile - Apparel industry, a group that includes 20 individual stocks and currently sits at #71 in the Zacks Industry Rank. On average, stocks in this group have lost 5.2% this year, meaning that CROX is performing better in terms of year-to-date returns.

In contrast, Manchester United falls under the Leisure and Recreation Services industry. Currently, this industry has 30 stocks and is ranked #97. Since the beginning of the year, the industry has moved -0.8%.

Crocs and Manchester United could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.


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Zacks Investment Research