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The latest trading session saw Crocs (CROX) ending at $102.64, denoting a -0.64% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.28%.
Coming into today, shares of the footwear company had lost 8% in the past month. In that same time, the Consumer Discretionary sector lost 1.39%, while the S&P 500 gained 2.08%.
The upcoming earnings release of Crocs will be of great interest to investors. The company is expected to report EPS of $2.29, down 11.24% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $963.74 million, indicating a 0.38% increase compared to the same quarter of the previous year.
Any recent changes to analyst estimates for Crocs should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.29% lower. Crocs is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, Crocs is currently exchanging hands at a Forward P/E ratio of 8.06. This signifies a discount in comparison to the average Forward P/E of 16.31 for its industry.
Investors should also note that CROX has a PEG ratio of 1.8 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CROX's industry had an average PEG ratio of 1.83 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 18% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.