Understanding Crocs Stock Trends Amid Market Movements

Author: Kelly Martin Updated: 09-20-2024 09:13 AM

Understanding Crocs Stock Trends Amid Market Movements

In the latest trading session, Crocs (CROX) closed at $137.92, experiencing a decline of 1.35% from the previous day. This downturn occurred during a time when the S&P 500 enjoyed a daily gain of 1.7%. The broader market movements showed the Dow up by 1.26% and the tech-heavy Nasdaq gaining impressive 2.51%.

Recent Performance Insights

Leading up to this trading day, shares of Crocs had seen a modest decline of 0.56% over the past month. In contrast, the Consumer Discretionary sector overall gained 2.85% and the S&P 500 noted a gain of 1.27% during the same period.

Upcoming Earnings Report

Investors are keenly awaiting the upcoming earnings report from Crocs, as the company's earnings per share (EPS) are projected to be $3.11. This indicates a decrease of 4.31% compared to the same quarter last year. Furthermore, analysts estimate that revenue will reach $1.05 billion, a slight increase of 0.08% from the prior year.

Annual Projections and Market Confidence

Regarding yearly performance, consensus estimates forecast an EPS of $12.85 and revenue of approximately $4.12 billion, reflecting increases of +6.82% and +4% respectively from the previous year. Investors should keep an eye on adjustments made by analysts towards their earnings forecasts, as such revisions reflect the shifting short-term business landscape. These changes can signal analysts' confidence in Crocs' ongoing performance and future potential.

Analyst Ratings and Zacks Rank

The Zacks Rank serves as a tool that captures the impact of estimate changes and delivers an actionable rating system. It ranges from #1 (Strong Buy) to #5 (Strong Sell) and boasts a track record of success; since 1988, #1 ranked stocks have averaged an annual return of +25%. Currently, the Zacks Consensus EPS estimate for Crocs has risen by 0.11% over the last month, putting Crocs at a Zacks Rank of #2 (Buy).

Valuation Metrics of Crocs

Analyzing Crocs' valuation, the stock is trading at a Forward P/E ratio of 10.88, presenting a discount compared to the industry's average Forward P/E of 19.27. Additionally, Crocs has a PEG ratio of 1.4, which is also a significant indicator for assessing hypothetical future earnings growth relative to its price. The average PEG ratio in the Textile - Apparel industry is currently 2.01.

Industry Context and Assessment

The Textile - Apparel industry falls within the Consumer Discretionary sector, currently holding a Zacks Industry Rank of 171, positioning it within the lower 33% of over 250 analyzed industry groups. This rank evaluates the strength of industry sectors by calculating the average Zacks Rank of the individual stocks within those groups, showing that higher-ranked industries typically outperform lower-ranked ones by a factor of two to one.

Conclusion

Investors and analysts alike remain cautious yet hopeful about Crocs’ ability to navigate through market fluctuations. As they await the company's earnings report and adjust their expectations according to market trends, it is key for investors to stay informed about potential fluctuations in stock performance.

Frequently Asked Questions

What recent performance has Crocs (CROX) seen?

Recently, Crocs closed at $137.92, down 1.35%, with a minor monthly loss of 0.56%.

What are the projected earnings for Crocs?

Projected earnings per share for Crocs are $3.11, reflecting a decrease from the previous year.

How does Crocs' valuation compare to its industry?

Crocs has a Forward P/E ratio of 10.88, significantly lower than the industry average of 19.27.

What is the Zacks Rank for Crocs?

Crocs currently holds a Zacks Rank of #2 (Buy), indicating favorable analyst outlooks.

How does the Textile - Apparel industry rank?

This industry ranks at 171, placing it in the bottom 33% of over 250 industries assessed by Zacks.

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Understanding Crocs Stock Trends Amid Market Movements