Have you been paying attention to shares of Crocs (CROX)? Shares have been on the move with the stock up 25.9% over the past month. The stock hit a new 52-week high of $101 in the previous session. Crocs have gained 56.1% since the start of the year compared to the 2% move for the Zacks Consumer Discretionary sector and the 14.8% return for the Zacks Textile - Apparel industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 27, 2021, Crocs reported EPS of $1.49 versus consensus estimate of $0.88 while it beat the consensus revenue estimate by 0.8%.
For the current fiscal year, Crocs is expected to post earnings of $3.91 per share on $1.71 billion in revenues. This represents a 21.74% change in EPS on a 23.22% change in revenues. For the next fiscal year, the company is expected to earn $4.36 per share on $1.84 billion in revenues. This represents a year-over-year change of 11.42% and 8.02%, respectively.
Valuation Metrics
Crocs may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Crocs have a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
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