In the latest trading session, Crocs (CROX) closed at $87.09, marking a +1.19% move from the previous day. This change outpaced the S&P 500's 0.16% gain on the day. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq increased by 0.26%.
Prior to today's trading, shares of the footwear company had lost 4.27% lagged the Consumer Discretionary sector's gain of 2.14% and the S&P 500's gain of 1.89%.
The investment community will be paying close attention to the earnings performance of Crocs in its upcoming release. The company's upcoming EPS is projected at $1.91, signifying a 24.21% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $918.53 million, indicating a 7.2% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.13 per share and revenue of $4 billion, indicating changes of -7.9% and 0%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Crocs. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Crocs possesses a Zacks Rank of #3 (Hold).
Investors should also note Crocs's current valuation metrics, including its Forward P/E ratio of 6.83. This expresses a discount compared to the average Forward P/E of 15.63 of its industry.
The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 19% of all industries, numbering over 250.
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.
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Crocs, Inc. (CROX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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