The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Crocs (CROX) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
Crocs made cultural resurgence driven by personalization and celebrity partnerships. But its acquisition of HeyDude could present a threat to future growth.
CROX is positioned for sustainable growth, fueled by strong consumer demand, strategic initiatives and expanding brand awareness.
The latest trading day saw Crocs (CROX) settling at $110.59, representing a +0.99% change from its previous close.
Crocs (CROX 1.40%) has struggled over the past few years under the weight of a Heydude acquisition that didn't go according to plan. But Heydude is close to turning toward growth and Crocs is buying back shares at a compelling price of 6.6x earnings, which could make this a long-term winner for investors.
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Crocs is an excellent value stock to invest in during the market downturn, with its shares down ~25% over the past year. Crocs reported accelerating revenue growth in Q4, driven by a resurgence in DTC performance for its lagging subsidiary HEYDUDE. The company is marketing HEYDUDE more aggressively via TikTok and celebrity endorsements.
In the latest trading session, Crocs (CROX) closed at $104.59, marking a -0.84% move from the previous day.
Crocs is deeply undervalued, with the market overly punishing it for the HEYDUDE acquisition, despite strong free cash flow and buybacks. The Crocs brand alone justifies the stock's value, and HEYDUDE's potential turnaround could add further upside. Discounted cash flow and other valuation models indicate a significant margin of safety, suggesting CROX is an easy buy at current prices.
Crocs has significantly outperformed the S&P 500 since 2014, with shares soaring 769.6% due to rapid growth in both revenue and profitability. Despite challenges with its HEYDUDE brand, Crocs' overall revenue and unit sales have seen substantial increases, driven by higher prices and international expansion. The stock remains attractively priced compared to peers, suggesting significant upside potential, even amid broader economic concerns like tariffs.
Crocs has shown impressive growth in recent years, with record revenues in 2024, despite its reputation for "ugly" footwear. CROX stock presents a buying opportunity due to its modest valuation and high-quality, highly profitable business model. The company boasts great financial metrics and robust cash flow generation, which can support share buybacks and debt reduction.