Crocs (NASDAQ: CROX) stock jumped immediately following its early November earnings report. That update showed strong sales growth and robust profitability in the selling period that ended in late September. Those wins came despite major pressures on the footwear industry, too.

But Crocs' shares are still underperforming a weak broader market this year. Through mid-November, the stock is down over 24% compared to a 17% drop in the S&P 500. Let's take a look at whether that underperformance simply reflects added risks to the business or instead creates a compelling buying opportunity.

There was a lot to like in Crocs' latest earnings report. While rival Nike saw weak global growth thanks to slowing demand in China and the U.S., Crocs had a great back-to-school season. Sales rose 20% in its core footwear brand after accounting for currency exchange rate shifts.

Continue reading

Source Fool.com