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CROX Archives - Elite Stock Chat

Category: CROX

CROX – Are Investors Undervaluing Crocs (CROX) Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the “Value” category. When paired with a high Zacks Rank, “A” grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Crocs (CROX Free Report) . CROX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.67 right now. For comparison, its industry sports an average P/E of 10.99. Over the past year, CROX’s Forward P/E has been as high as 12.91 and as low as 4.20, with a median of 8.76.

Investors will also notice that CROX has a PEG ratio of 0.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company’s expected EPS growth rate. CROX’s PEG compares to its industry’s average PEG of 1.52. Within the past year, CROX’s PEG has been as high as 0.86 and as low as 0.28, with a median of 0.59.

Finally, investors should note that CROX has a P/CF ratio of 9.86. This metric focuses on a firm’s operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company’s current P/CF looks solid when compared to its industry’s average P/CF of 22.10. Within the past 12 months, CROX’s P/CF has been as high as 14.31 and as low as 3.93, with a median of 9.89.

If you’re looking for another solid Textile – Apparel value stock, take a look at Guess (GES Free Report) . GES is a # 2 (Buy) stock with a Value score of A.

Guess also has a P/B ratio of 1.69 compared to its industry’s price-to-book ratio of 6.01. Over the past year, its P/B ratio has been as high as 2.90, as low as 1.69, with a median of 2.19.

Value investors will likely look at more than just these metrics, but the above data helps show that Crocs and Guess are likely undervalued currently. And when considering the strength of its earnings outlook, CROX and GES sticks out as one of the market’s strongest value stocks.

CROX – Crocs Has Significant Room For Growth

Crocs shoe store



Crocs (NASDAQ:CROX) is a fairly new company founded in 1999 in Broomfield, Colorado. It sells under the Crocs brand name various footwear products such as clogs, sandals, slides, flips, wedges, platforms, socks, boots, shoe charms and slippers.

Especially since

CROX – Crocs: A Story For Bulls

Pink and blue flip flops on the wooden pier with blurred sun glare



Crocs (NASDAQ:CROX) closed Q1 2023 reporting impressive results, easily beating analyst estimates with regards to topline and crushing estimates with regards to EPS. Moreover, the company voiced bullish commentary going into Q2 2023 and beyond–raising guidance and reiterating the expectation

Crox vs SP500 12 months performance

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CROX Q1 2023 reporting

CROX Q1 2023 reporting

CROX valuation

Author’s EPS Estimates; Author’s Calculation

CROX valuation sensitivity table

Author’s EPS Estimates; Author’s Calculation

CROX – According to This Popular Indicator, Crocs Stock Is a Screaming Buy

Over the past three years, Crocs (CROX 1.00%) shares have produced a monster return of 520%. This performance trounces the gains posted by both the S&P 500 and the Nasdaq Composite index. Crocs’ return also easily outpaces some of its industry peers, like Nike, Skechers, and VF Corporation. 

But while past returns can certainly draw in some investors looking to ride the momentum to a higher portfolio value, what really matters is what the future looks like, particularly over the long term. In Crocs’ case, there’s a popular indicator that might indicate this top footwear stock is a screaming buy right now. Let’s take a closer look. 

A bargain-basement valuation

Despite Crocs’ stock making a meteoric rise in recent years, surprisingly, it still looks undervalued today. As of this writing, shares trade at a price-to-earnings (P/E) multiple of 16.6. For comparison’s sake, the S&P 500 is trading at a P/E ratio of 18.6 right now. And Skechers’ P/E multiple is 20.9.

A lower valuation is more attractive from an investment perspective because it means there is more upside, all else being equal. Expectations for the company and stock are lower than where some might think they should be. Once the market realizes that shares should be valued higher, multiple expansion occurs, boosting returns.

Reasons to be bullish on Crocs’ Stock

A cheap valuation might be warranted if the business in question is of poor quality. This is called a value trap, something investors should try to avoid. Crocs is far from a value trap. And there are three compelling reasons to be bullish on the stock. 

First, throughout Crocs’ history, it has been heavily reliant on a single product for its success — the popular foam clog. While this item accounted for 57% of the overall company’s sales during 2022, investors should expect this figure to come down going forward. That’s because in February 2022, Crocs completed the purchase of casual footwear brand HeyDude in a deal worth $2.5 billion. HeyDude is projected to do over $1.1 billion in revenue in 2023, and it’s registering faster growth than the flagship Crocs brand.

Shareholders should appreciate this move by Crocs because it can help to diversify the company’s revenue streams, making it less dependent on the success of the foam clog. Fashion is fickle, and consumer tastes are constantly changing. Crocs should be able to support sustainable demand over longer periods of time with this acquisition and benefit from selling numerous in-demand footwear products under one umbrella.

Moreover, Crocs has been effective with its marketing strategy. The company has been known for doing some farfetched collaborations, like those with Hidden Valley Ranch, Kentucky Fried Chicken, and 7-Eleven. In order to bolster the brand, Crocs has also created designs for Justin Bieber and Balenciaga, to name just two. This keeps the excitement high, while pushing to drive greater interest from customers.

Finally, investors should be bullish on Crocs because of its outstanding profitability and growth potential. In 2022, the business posted a gross margin of 52% and an operating margin of 24%. Both were down compared to 2021, but they still represent better profitability than Nike, for example, which dominates the clothing and footwear categories. Crocs’ ability to also generate lots of free cash flow will allow it to easily navigate current macroeconomic headwinds.

According to Wall Street analysts, Crocs’ revenue is expected to increase at a compound annual growth rate of 12.2% between 2022 and 2026. And in 2026, the business is forecast to produce $17.57 in diluted earnings per share. This means the current price of roughly $144 is just 8 times that projected bottom-line figure. This all makes it a no-brainer decision to seriously consider buying Crocs stock.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool recommends Crocs and Skechers U.s.a. and recommends the following options: long January 2025 $47.50 calls on Nike. The Motley Fool has a disclosure policy.

CROX – Investors Heavily Search Crocs, Inc. (CROX): Here is What You Need to Know

Crocs (CROX Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock’s performance in the near term.

Over the past month, shares of this footwear company have returned +17.8%, compared to the Zacks S&P 500 composite’s +6.2% change. During this period, the Zacks Textile – Apparel industry, which Crocs falls in, has gained 14.8%. The key question now is: What could be the stock’s future direction?

While media releases or rumors about a substantial change in a company’s business prospects usually make its stock ‘trending’ and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings Estimates

Here at Zacks, we prioritize appraising the change in the projection of a company’s future earnings over anything else. That’s because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock’s fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Crocs is expected to post earnings of $2.14 per share for the current quarter, representing a year-over-year change of +4.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $11.19 for the current fiscal year indicates a year-over-year change of +2.5%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $12.55 indicates a change of +12.2% from what Crocs is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool — the Zacks Rank — is a more conclusive indicator of a stock’s near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Crocs.

The chart below shows the evolution of the company’s forward 12-month consensus EPS estimate:

12 Month EPS

12-month consensus EPS estimate for CROX _12MonthEPSChartUrl

Projected Revenue Growth

Even though a company’s earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It’s almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company’s potential revenue growth is crucial.

In the case of Crocs, the consensus sales estimate of $852.98 million for the current quarter points to a year-over-year change of +29.2%. The $4 billion and $4.36 billion estimates for the current and next fiscal years indicate changes of +12.5% and +9%, respectively.

Last Reported Results and Surprise History

Crocs reported revenues of $945.16 million in the last reported quarter, representing a year-over-year change of +61.1%. EPS of $2.65 for the same period compares with $2.15 a year ago.

Compared to the Zacks Consensus Estimate of $937.91 million, the reported revenues represent a surprise of +0.77%. The EPS surprise was +21.56%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.


No investment decision can be efficient without considering a stock’s valuation. Whether a stock’s current price rightly reflects the intrinsic value of the underlying business and the company’s growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company’s valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Crocs is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom Line

The facts discussed here and much other information on Zacks.com might help determine whether or not it’s worthwhile paying attention to the market buzz about Crocs. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

CROX – Crocs Stepping Up, Shows Strength Compared To General Market: A Technical Analysis – Crocs (NASDAQ:CROX)

Crocs, Inc CROX was popping up about 2% higher on Monday despite the S&P 500 edging slightly lower ahead of big-tech earnings kicking off this week with Netflix and Tesla reporting earnings.

The shoes-with-holes maker has been trading in a strong uptrend within a rising channel pattern since March 15. The pattern is bullish for the short term, but can be bearish down the road.

For bullish traders, the “trend is your friend” (until it’s not) and the stock is likely to continue upwards. Aggressive traders may decide to buy the stock at the lower trendline and exit the trade at the upper trendline.

Bearish traders will want to watch for a break-down from the lower ascending trendline, on high volume, for an entry. When a stock breaks down from an ascending channel, it’s a powerful reversal signal and indicates a longer-term downtrend is likely in the cards.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Crocs Chart: On Monday, Crocs attempted to break up from the ascending channel, but failed and wicked from the upper trendline. This indicates the local top may have occurred and Crocs will retrace, possibly to print a higher low at the lower trendline of the pattern.

  • Crocs was working to print a shooting star candlestick, which also suggests the higher high has occurred, and a decline is in the cards for Tuesday. Crocs’ move higher was also on lower-than-average volume, which indicates the bulls may be becoming exhausted.
  • The stock’s most recent higher low within its uptrend was printed on April 6 at $119.61 and the most recent confirmed higher high was formed at the $130.80 mark on March 31. If Crocs falls lower over the next few trading days, bullish traders can watch for the stock to print a reversal candlestick above $120.
  • Bearish traders want to see big bearish volume come in and break Crocs down from the rising channel pattern.
  • Crocs has resistance above at $145.37 and $157.80 and support below at $135.67 and $126.33.

Read Next: Want To Customize Crocs? Company Gives Option For Bulk Orders Of Classic Clogs & Jibbitz Charms

CROX – Crocs Stock: A Potential Multibagger?

Over the past five years, Crocs (CROX 1.10%) stock has been a huge winner for investors — surging 665% even after falling 31% from its peak. That’s a ridiculous return which crushes the broader market’s results by an insanely wide margin. Known for its popular foam clogs, the company is still registering outstanding results at a time when economic uncertainty is surging.

But does this footwear stock still have room to run — and become a potential multi-bagger for your portfolio, repeating its past success? Let’s take a closer look. 

Diversifying the product line 

In 2022, Crocs was able to increase its sales by 53.7% on a year-over-year basis. And this was on top of a 66.9% jump in 2021. The company’s gross margin of 52.3% and operating margin of 23.9% in 2022, although lower than the prior year’s figures, are still superb for any business, let alone an apparel company. On the surface, this is a rapidly expanding and profitable enterprise. 

But there is one issue that shareholders should monitor. Last year, 77% of the Crocs brand’s revenue came from a single product, the foam clog. Now, this isn’t necessarily a bad thing on its own. Over the past few years, consumers have been drawn to affordable and comfortable clothing, a trend that might have been spurred by the coronavirus pandemic and the popularity of people working from home. And this has boosted Crocs’ prospects, but it does leave the business overly exposed to the success of one item. And if we know anything about consumer behavior, it is that change is a constant. 

That’s why management, led by CEO Andrew Rees, decided to acquire casual footwear company HeyDude in late 2021 in a $2.5 billion deal. HeyDude is an Italian shoemaker, but its merchandise is popular here in the U.S. According to the fall 2022 Taking Stock With Teens survey conducted by Piper Sandler, HeyDude was the seventh most popular footwear brand among teenagers. For what it’s worth, Crocs was number five on this list. That’s a pretty good indicator of how strong these brands are, especially with such a valuable demographic that can be lifelong customers. 

In order to set Crocs up for lasting success, diversifying the product lineup was essential. The added benefit is that HeyDude gains from Crocs’ global distribution and marketing capabilities, and Crocs is better off thanks to a larger potential customer base. In 2022, HeyDude’s revenue (post-acquisition) of $896 million was up 54% year over year, far outpacing the 14.9% growth of the Crocs brand. 

Mixing value with growth 

But one of the biggest risks to keep in mind is that the company faces a lot of competition in the footwear market. There are well-known names like Nike, Adidas, and Under Armour, and there are more direct rivals like Skechers, VF Corp., and Deckers. Moreover, there’s a very real possibility that the brand simply falls out of favor with consumers, a constant worry with these types of companies. 

As the financials show, however, Crocs’ business has posted fantastic growth in recent years, continuing throughout 2022. And management expects revenue of between $3.9 billion and $4 billion in 2023, good for an 11.5% jump (at the midpoint). “We anticipate another record year in 2023 with growth expected to be led by sandals and international for the Crocs Brand and increased U.S. market penetration for HeyDude,” Rees highlighted in the Q4 2022 press release. 

Looking even further out, it’s clear that Wall Street is very optimistic. Consensus analyst estimates call for sales to increase at a compound annual rate of 12.2% between 2022 and 2026, with operating leverage resulting in earnings per share rising at a 19.2% annualized clip over that time. This outlook should please shareholders. 

If the growth prospects aren’t enough, consider that Crocs’ stock trades at a price-to-earnings ratio of just 14. Crocs shares look like a buy because they are selling at such a cheap valuation, and the company is posting outstanding growth and is incredibly profitable. That’s a wonderful multi-bagger recipe which should please investors. 

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike and Under Armour. The Motley Fool recommends Crocs and Skechers U.s.a. and recommends the following options: long January 2025 $47.50 calls on Nike. The Motley Fool has a disclosure policy.

CROX – Crocs: Why This Turnaround Story Has Incredible Upside

Colored bright slippers for women and children flip flops on a blue background. Place for text


Investment Thesis

Crocs, Inc. (NASDAQ:CROX) is a Colorado-based global lifestyle brand that designs, produces, and distributes innovative footwear, accessories, and apparel. Its mission is to provide everyone with comfortable, lightweight, and versatile footwear.

This once uninspired, unloved, and unprofitable company

Data by YCharts
Summarized Financial Statements for CROX (Crocs Inc)

Compiled by Author using Seeking Alpha

Long Term Guidance for CROX (Crocs)

Crocs Investor Presentation

Crocs year in review (<a href='https://seekingalpha.com/symbol/CROX' title='Crocs, Inc.'>CROX</a>)

Crocs Investor Presentation

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Bear, Base, and Bull Analyst Forecast for Crox (Crocs)

Compiled by Author using Seeking Alpha

CROX – Crocs, Inc. to Present at the UBS Global Consumer and Retail Conference

BROOMFIELD, Colo., March 7, 2023 /PRNewswire/ — Crocs, Inc. (NASDAQ: CROX), a world leader in innovative casual footwear for women, men, and children, today announced that it will present at the UBS Global Consumer and Retail Conference on Wednesday, March 15, 2023 at 1:00pm ET.

A live broadcast of the Company’s presentation may be found on the Investor Relations section of the Crocs website, investors.crocs.com. A replay of the webcast will remain available on the website following the completion of the conference.

About Crocs, Inc.:

Crocs, Inc. (Nasdaq: CROX) is a world leader in innovative casual footwear for women, men, and children, combining comfort and style with a value that consumers know and love. The Company’s brands include Crocs and HEYDUDE and its products are sold in more than 85 countries through wholesale and direct-to-consumer channels. For more information on Crocs, Inc. please visit investors.crocs.com.  To learn more about our brands, please visit www.crocs.com or www.heydude.com or follow @Crocs or @heydudeshoes on Facebook, Instagram, and Twitter.


Investor Contact:
Cori Lin, Crocs, Inc.
(303) 848-5053
[email protected]

PR Contact:
Melissa Layton, Crocs, Inc.
(303) 848-7885
[email protected]

SOURCE Crocs, Inc.

CROX – 1 Ridiculously Cheap Stock You’ll Regret Not Buying on the Dip

After a devastating 2022, a year that saw the S&P 500 decline 19%, investors are looking for things to bounce back quickly. This means finding companies that have promising futures and that are trading at attractive valuations. One such name is Crocs (CROX -2.48%). 

Since reporting its 2022 fourth-quarter financials on Feb. 16, the popular footwear brand has seen its shares slip about 10%. And although they are up 59% over the past six months, the shares are still down nearly 30% from their all-time high. Here’s why investors will regret not buying Crocs on the dip.  

Continued business momentum 

It’s an accurate assessment to say that Crocs’ business was boosted by the COVID-19 pandemic. In 2020 and 2021, revenue jumped 12.6% and 66.9%, respectively, showcasing a sharp top-line acceleration for a company that was struggling for a few years before the health crisis. The heightened consumer interest in comfortable and affordable attire probably deserves some credit here. 

But the strong momentum hasn’t abated. For the just-reported full year of 2022, revenue was up 53.7% year over year to $3.6 billion. Crocs’ financials were bolstered by the success of casual footwear brand HeyDude, an acquisition that was completed about one year ago, which saw its own sales climb 70% compared to 2021 to nearly $1 billion. On the other hand, revenue for the flagship Crocs brand was up just 14.9% thanks to gains in all three geographic regions. 

Nonetheless, it’s hard to argue with these numbers given the softer macroeconomic picture that characterized last year and worried investors. Ongoing inflationary pressures, and the higher interest rates central banks are using to combat rising prices, can discourage consumers from spending and borrowing. This makes Crocs’ resilient business model even more impressive. 

What really stands out about this company is not just its ongoing revenue gains in an otherwise difficult operating environment but just how profitable this enterprise is. Crocs’ operating margin has trended higher over the past decade, coming in at 23.9% in 2022. This impressive bottom line is why Crocs has been able to repurchase $1.7 billion worth of its stock since 2014, equal to 22% of the current market cap of $7.7 billion. 

Rare mix of growth and value 

Between 2017 and 2022, Crocs’ revenue soared at a compound annual rate of 28.3%. And diluted earnings per share swung from a loss of $0.41 to a positive $8.71. The stock has followed suit, skyrocketing 830% over the past five years. This remarkable performance easily crushes that of the S&P 500, which produced a total return of 62% during the same time. 

Looking ahead, the management team is confident in Crocs’ ability to continue growing at a rapid clip. They expect annual sales to total $6 billion in 2026. Two of the most important ways to achieve this goal are to boost sales of sandals and further penetrate China, the world’s second-biggest footwear market. 

Even Wall Street is optimistic about Crocs’ direction. Over the next four years, consensus analyst estimates call for revenue to rise at a compound annual rate of 12.2% between 2022 and 2026, with EPS increasing at a 19.2% average annual clip. 

Usually, investors would rightfully assume that a business with Crocs’ tremendous growth history, as well as its bright prospects and outstanding profitability, would result in a share price that is very expensive. Crocs’ price-to-earnings (P/E) ratio was under 8 as recently as November. And even after the stock has climbed 72% in the past six months, shares are still trading at a P/E of just 14 right now. This compares quite favorably to the P/E of 18 for the overall S&P 500.  

Based on the favorable long-term outlook of Crocs’ business, coupled with the attractive valuation, it might be a good idea to consider investing in the stock.