Crocs (CROX) closed at $81.24 in the latest trading session, marking a -2.45% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.3% for the day. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq added 0.03%.
Heading into today, shares of the footwear company had gained 6.91% over the past month, outpacing the Consumer Discretionary sector's gain of 5.83% and the S&P 500's gain of 2.09%.
Analysts and investors alike will be keeping a close eye on the performance of Crocs in its upcoming earnings disclosure. In that report, analysts expect Crocs to post earnings of $2.38 per share. This would mark a year-over-year decline of 33.89%. In the meantime, our current consensus estimate forecasts the revenue to be $963.85 million, indicating a 9.26% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $11.55 per share and a revenue of $3.99 billion, demonstrating changes of -12.3% and -2.69%, respectively, from the preceding year.
Any recent changes to analyst estimates for Crocs should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% decrease. Crocs presently features a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Crocs is currently trading at a Forward P/E ratio of 7.21. This indicates a discount in contrast to its industry's Forward P/E of 16.09.
Investors should also note that CROX has a PEG ratio of 1.92 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Textile - Apparel stocks are, on average, holding a PEG ratio of 2.56 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 189, which puts it in the bottom 24% of all 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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Crocs, Inc. (CROX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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