Crocs (CROX) closed the most recent trading day at $103.89, moving -1.17% from the previous trading session. This change lagged the S&P 500's 1.83% gain on the day. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 2.45%.
Coming into today, shares of the footwear company had lost 5.76% in the past month. In that same time, the Consumer Discretionary sector lost 5.42%, while the S&P 500 lost 3.31%.
Investors will be eagerly watching for the performance of Crocs in its upcoming earnings disclosure. The company is expected to report EPS of $2.29, down 11.24% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $963.74 million, showing a 0.38% escalation compared to the year-ago quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Crocs. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.29% decrease. Crocs currently has a Zacks Rank of #4 (Sell).
In the context of valuation, Crocs is at present trading with a Forward P/E ratio of 8.2. This signifies a discount in comparison to the average Forward P/E of 16.17 for its industry.
One should further note that CROX currently holds a PEG ratio of 1.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Textile - Apparel industry stood at 1.83 at the close of the market yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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