Crocs (CROX) closed the most recent trading day at $116.19, moving -0.33% from the previous trading session. This change lagged the S&P 500's 0.12% gain on the day. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, lost 4.09%.
Prior to today's trading, shares of the footwear company had lost 0.2% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 0.58% and lagged the S&P 500's gain of 3.98% in that time.
Investors will be hoping for strength from Crocs as it approaches its next earnings release. On that day, Crocs is projected to report earnings of $2.95 per share, which would represent a year-over-year decline of 8.95%. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, up 8.35% from the year-ago period.
CROX's full-year Zacks Consensus Estimates are calling for earnings of $11.54 per share and revenue of $4.03 billion. These results would represent year-over-year changes of +5.68% and +13.24%, respectively.
It is also important to note the recent changes to analyst estimates for Crocs. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Crocs is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Crocs is currently trading at a Forward P/E ratio of 10.11. For comparison, its industry has an average Forward P/E of 10.11, which means Crocs is trading at a no noticeable deviation to the group.
It is also worth noting that CROX currently has a PEG ratio of 0.67. 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 industry currently had an average PEG ratio of 1.12 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% 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.
To follow CROX in the coming trading sessions, be sure to utilize Zacks.com.
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