Will This Beaten-Down Stock Bounce Back? 3 Things to Know
As the S&P 500 just came off its worst first half of any year since 1970, many outstanding businesses are falling with the broader index. The easy monetary policy by the Federal Reserve has come to an end as central bankers hike interest rates in an effort to curb soaring inflation across the economy. The result is that investors aren't comfortable taking on as much risk as they previously were.
One such stock that has gotten absolutely hammered is footwear brand Crocs (NASDAQ: CROX), with shares down more than 50% in 2022. However, I believe there are three important reasons this stock will turn things around and bounce back.
For starters, Crocs has proven that it can grow its business at a rapid pace. A surprising pandemic winner, the company saw its revenue and net income increase 67% and 132%, respectively, in 2021 -- continuing the strong gains they posted in 2020. Consumers were interested more in comfort and affordability when it comes to their apparel choices, which is what Crocs delivers.
Source Fool.com