Crocs is Down 58% From Its High. Time to Buy?
Despite growing demand for Crocs' (NASDAQ: CROX) footwear, the stock has cratered since hitting an all-time high in late 2021. Obviously, worries over consumer spending in this inflationary environment have weighed on all retail stocks, but Crocs' latest sales figures make its single-digit price-to-earnings (P/E) multiple appear very tempting.
The colorful footwear continued to experience strong demand last quarter, with revenue growing at double-digit rates year over year. While Wall Street's favorite profit metric -- earnings per share (EPS) -- missed analysts' estimates, Crocs seems to be one of those companies that the market consistently underestimates. Is it time to buy?
Stocks have gotten hammered for missing estimates lately, but not Crocs. The reason likely has to do with a very low valuation that seems to already price in bad news. Indeed, Crocs' adjusted EPS growth of 20% last quarter looks almost too good for a stock trading at a trailing P/E of 9.
Source Fool.com
