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Crocs (CROX) is well positioned to outperform the market, as it exhibits above-average growth in financials.
Investors interested in stocks from the Textile - Apparel sector have probably already heard of Crocs (CROX) and Kontoor Brands (KTB). But which of these two stocks presents investors with the better value opportunity right now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
While footwear manufacturers like Nike Inc. NYSE: NKE, Crocs Inc. NASDAQ: CROX, and Skechers U.S.A. Inc. NYSE: SKX stocks took hits with contracting sales due to weaker consumer spending, ON Holdings AG NYSE: ONON has been quietly making new highs trading up nearly 90% year-to-date (YTD).
Nike has good profit margins, a lower valuation than it's had in years, and a new CEO who could help stimulate sales growth. This other company has better margins, an even cheaper valuation, and a special situation of its own that can stimulate growth.
Crocs' historical 30%+ ROIC is comparable to that of a mega-cap software company while at the same time having "luxury good" like gross margins. Management's initiatives to gain share through the DTC channel are paying off as almost 50% of sales are now DTC. CROX excels in brand marketing through IP partnerships, appealing to a broad demographic and fostering lifelong customer loyalty.
Crocs' strong financials and competitive advantage are overshadowed by HEYDUDE's poor performance, yet the stock remains undervalued with a promising risk-return ratio. Conservative DCF models project a 19% upside for Crocs, with EPS and operating margins expected to improve gradually. Risks include HEYDUDE's stabilization and potential shifts in trends, but Crocs' low multiples and solid fundamentals present an attractive investment.
SUNRISE, Fla.--(BUSINESS WIRE)--Squishmallows fans can now slip into the world's most iconic 13-hole footwear! Jazwares, one of the world's leading toy companies, and Crocs, a global leader in innovative casual footwear, are partnering to bring everyone's favorite ultra-soft plush, Squishmallows, a full line of unique Crocs™ shoes and Jibbitz™ charms. Combining Squishmallows colorful personality with cute and comfy styling, the collection features three vibrant designs available now at your fav.
There's nothing like a tie-up with a major fast-food slinger to boost a stock's price. The offbeat partnership is getting the shoemaker's wares in front of thousands of potential customers.
Crocs (CROX) reachead $137.92 at the closing of the latest trading day, reflecting a -1.35% change compared to its last close.