Crocs (CROX) closed at $100 in the latest trading session, marking a -1.85% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.91%. Meanwhile, the Dow lost 1.5%, and the Nasdaq, a tech-heavy index, lost 1.96%.
Heading into today, shares of the footwear company had gained 14.69% over the past month, outpacing the Consumer Discretionary sector's loss of 9.2% and the S&P 500's loss of 7.38% in that time.
Investors will be eagerly watching for the performance of Crocs in its upcoming earnings disclosure. On that day, Crocs is projected to report earnings of $2.52 per share, which would represent a year-over-year decline of 16.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $909.78 million, down 3.07% from the year-ago period.
CROX's full-year Zacks Consensus Estimates are calling for earnings of $13.20 per share and revenue of $4.19 billion. These results would represent year-over-year changes of +0.23% and +2.14%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Crocs. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.68% upward. At present, Crocs boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Crocs has a Forward P/E ratio of 7.72 right now. For comparison, its industry has an average Forward P/E of 12.89, which means Crocs is trading at a discount to the group.
One should further note that CROX currently holds a PEG ratio of 1.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Textile - Apparel was holding an average PEG ratio of 1.68 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 41, positioning it in the top 17% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 Report
This article originally published on Zacks Investment Research (zacks.com).
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