Better Buy: Crocs or Every Nasdaq Stock?

By all accounts, it's a red-hot, must-own name.

Already up more than 1,100% from last March's low, Crocs (NASDAQ: CROX) managed to tack on more gains last week in response to blowout second-quarter numbers. The company's top line of $640.8 million was not only a record, but it easily surpassed analyst expectations of only $566 million. Per-share earnings of $2.23 similarly trounced estimates of $1.59. No investor has any reasonable right to ask for anything more. This company is clearly firing on all cylinders.

But stock picking can be a tricky endeavor sometimes. While timing your trade entries (and exits) based on a chart usually ends up costing more than it saves, this is one instance where waiting for a rally to be reeled in before you buy is apt to pay off. Consider owning something more broad-based like the Nasdaq Composite (NASDAQINDEX: ^IXIC) or the Nasdaq 100 instead. It boasts a little less upside right now, but also a lot less risk.

Source Fool.com