The most recent trading session ended with Crocs (CROX) standing at $89.46, reflecting a -1.39% shift from the previouse trading day's closing. This change was narrower than the S&P 500's 2.36% loss on the day. Meanwhile, the Dow lost 2.48%, and the Nasdaq, a tech-heavy index, lost 2.55%.
Heading into today, shares of the footwear company had lost 13.26% over the past month, lagging the Consumer Discretionary sector's loss of 7.05% and the S&P 500's loss of 5.6% in that time.
The investment community will be paying close attention to the earnings performance of Crocs in its upcoming release. The company is slated to reveal its earnings on May 8, 2025. It is anticipated that the company will report an EPS of $2.51, marking a 16.89% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $909.58 million, reflecting a 3.1% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.03 per share and a revenue of $4.18 billion, representing changes of -1.06% and +1.95%, respectively, from the prior year.
Any recent changes to analyst estimates for Crocs should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 1.35% lower within the past month. At present, Crocs boasts a Zacks Rank of #4 (Sell).
Looking at valuation, Crocs is presently trading at a Forward P/E ratio of 6.97. For comparison, its industry has an average Forward P/E of 11.19, which means Crocs is trading at a discount to the group.
Investors should also note that CROX has a PEG ratio of 1.52 right now. 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. The Textile - Apparel was holding an average PEG ratio of 1.52 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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