Crocs (CROX) closed at $85.87 in the latest trading session, marking a +1.55% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq added 0.83%.
Prior to today's trading, shares of the footwear company had lost 12.68% over the past month. This has lagged the Consumer Discretionary sector's loss of 4.05% and the S&P 500's loss of 2.84% in that time.
Crocs will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.09, up 4.04% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.03 billion, up 4.27% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.10 per share and revenue of $4.01 billion, which would represent changes of +10.81% and +12.76%, respectively, from the prior year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.32% lower. Crocs currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Crocs is currently trading at a Forward P/E ratio of 6.99. This represents a discount compared to its industry's average Forward P/E of 12.18.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 15% 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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