Latest news with #CROX
CNBC
3 days ago
- Business
- CNBC
Buying the dip on this footwear stock using options after 'overdone' sell-off
Crocs got hammered — down nearly 30% after the Thursday report — after cautious guidance tied to the macro backdrop overshadowed an earnings beat. Sure, uncertainty is everywhere right now, but such a flush on a name that still topped earnings looks overdone. Analyst views are mixed, yet even the downgrades (Stifel, Barclays, BofA, KeyBanc) carry price targets in the $80–$100 range — still above where CROX is trading. I'm not expecting fireworks here, but the setup I like only needs CROX to trade around $77 —about 50 cents from current levels — to deliver a 100% return on risk. Small move, defined risk, clear payoff. For CNBC readers: I'm opening up my options trade scanner for free —grab a few more trades like this while it's live. I also break down these setups in detail in my book Mean Reversion Trading . To provide confirmation, I am using two technical indicators for this trade setup. MACD (moving average convergence divergence): One reliable way to spot potential reversals is the MACD indicator. The standard settings (12, 26, 9) are widely used but can be a bit laggy, so I often switch to MACD (5, 13, 5) for quicker reads. On CROX, the MACD line (blue) still hasn't crossed above the signal line (yellow). With post-earnings setups — especially after a steep drop — patience pays. Waiting for confirmation (e.g., the bullish crossover or at least a turning histogram) helps avoid getting trapped in the wrong trade if the slide continues. RSI (relative strength index): The RSI is a straightforward momentum gauge and a handy reversal tell. Since it's currently oversold, consider waiting for it to curl higher and reclaim 30 for added confirmation — helps avoid jumping in on a false start. The trade: CROX 76-77 bull call spread To get bullish on CROX, I'm using a bull call spread. With the stock around $76.56, the setup is simple: buy the $76 call (ITM) and sell the $77 call (OTM) as one package — defined risk and defined payoff. If price wiggles, you can scale by layering more spreads. For example, if CROX dips toward $73, add a $73–$74 call spread to take advantage of the pullback while keeping risk tight. Here is my exact trade setup: Buy $76 call, Sept. 12 expiry Sell $77 call, Sept. 12 expiry Cost: $50 Potential Profit: $50 If CROX finishes at or above $77 (the short strike) by expiration, the spread pays its full $1.00 value—turning a roughly $0.50 debit into a 100% return. Running 50 contracts risks $2,500 for a $2,500 max gain. As CROX rebounds, you can ladder in additional spreads to scale exposure methodically and capitalize on these occasional washouts. -Nishant Pant Founder: Author: Mean Reversion Trading Youtube, Twitter: @TheMeanTrader DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Forbes
08-08-2025
- Business
- Forbes
Run To Buy CROX Stock At $75?
Crocs stock (NASDAQ:CROX) has just taken a severe hit – down 30% following disappointing guidance and the announcement that they are reducing orders for the remainder of the year. While the stock may appear inexpensive at 7x forward earnings, there is a strong likelihood that this is not the lowest point. The fundamentals are rapidly declining, and historical trends indicate that CROX typically suffers much more than the market during turbulent times. Separately, see – Amazon Stock To $100? The Figures Tell the Truth Yes, It Appears Inexpensive… But There's a Catch Trading at 7x forward adjusted earnings certainly catches the eye. However, herein lies the truth – sometimes stocks are cheap for specific reasons. The market might be anticipating further challenges instead of presenting a bargain. Also, take a look at – CROX Valuation Comparison. There are numerous factors that could prevent Crocs stock from bouncing back: History Lesson: CROX Gets Hit Hard in Difficult Times Here's where it becomes intriguing (and alarming). Crocs doesn't just decline during market stress – it gets thoroughly devastated: But Wait – We Might Be Completely Incorrect Here's the reality about predicting market bottoms – surprises can occur. There are indeed reasons this could be the point where CROX begins its recovery: If any combination of these elements takes place, the current price might look quite unreasonable in 2-3 years. Occasionally, the market overreacts in both directions, and we may be witnessing a significant downward overshoot right now. So What's the Situation? The low valuation appears alluring, but the evidence indicates that the selling may not yet be complete. The fundamentals are worsening, not improving. Revenue growth has stagnated, margins are tightening, and management is currently reducing orders – none of this suggests a 'bottom.' Moreover, historical data reveals that when markets grow anxious, CROX tends to decline more severely and takes longer to recover than other stocks. Given the ongoing economic uncertainties, this pattern could very likely repeat. The Honest Discussion While some intrepid investors may wish to catch this falling knife at its current value, the clever money most likely bides its time. There's a substantial possibility of witnessing another 30-40% drop from this point, potentially pushing the stock below $50. The 7x earnings multiple may appear enticing, but it could very well be the market's way of signaling that earnings will diminish significantly. Sometimes inexpensive stocks become even cheaper before they improve. In conclusion: The suffering is likely not finished yet. If you're considering making a move, it might be wise to wait and observe if things genuinely start to turn around fundamentally before placing a bet on a rebound. Such situations prompt us to contemplate the risks involved in investing. There will always be a significant risk when investing in a single stock or just a few stocks. Consider the Trefis High Quality (HQ) Portfolio, which, with its collection of 30 stocks, has a proven record of comfortably outperforming the S&P 500 in the last 4-year timeframe. Why is that? As a collective, HQ Portfolio stocks have yielded better returns with reduced risk compared to the benchmark index; leading to a smoother ride, as illustrated in HQ Portfolio performance metrics.
Yahoo
08-08-2025
- Business
- Yahoo
Crocs (CROX) Reports Q2 Earnings: What Key Metrics Have to Say
Crocs (CROX) reported $1.15 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 3.4%. EPS of $4.23 for the same period compares to $4.01 a year ago. The reported revenue represents a surprise of +0.83% over the Zacks Consensus Estimate of $1.14 billion. With the consensus EPS estimate being $4.01, the EPS surprise was +5.49%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Crocs performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Crocs Brand: $959.59 million compared to the $957.25 million average estimate based on three analysts. The reported number represents a change of +5% year over year. Revenues- HEYDUDE Brand: $189.78 million versus $182.75 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -3.9% change. Revenues By Channel- HEYDUDE Brand- Wholesale: $99.76 million versus the two-analyst average estimate of $96.53 million. Revenues By Channel- Crocs Brand- Direct-to-Consumer: $494.91 million versus $502.56 million estimated by two analysts on average. Revenues By Channel- HEYDUDE Brand- Direct-to-Consumer: $90.02 million compared to the $90.69 million average estimate based on two analysts. Revenues By Channel- Crocs Brand- Wholesale: $464.68 million compared to the $457.57 million average estimate based on two analysts. View all Key Company Metrics for Crocs here>>> Shares of Crocs have returned +0.4% over the past month versus the Zacks S&P 500 composite's +1.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Crocs, Inc. (CROX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Melden Sie sich an, um Ihr Portfolio aufzurufen.
Yahoo
08-08-2025
- Business
- Yahoo
Crocs's (NASDAQ:CROX) Q2 Earnings Results: Revenue In Line With Expectations But Stock Drops 27.3%
Footwear company Crocs (NASDAQ:CROX) met Wall Street's revenue expectations in Q2 CY2025, with sales up 3.4% year on year to $1.15 billion. On the other hand, next quarter's revenue guidance of $956 million was less impressive, coming in 10.7% below analysts' estimates. Its non-GAAP profit of $4.23 per share was 5.3% above analysts' consensus estimates. Is now the time to buy Crocs? Find out in our full research report. Crocs (CROX) Q2 CY2025 Highlights: Revenue: $1.15 billion vs analyst estimates of $1.15 billion (3.4% year-on-year growth, in line) Adjusted EPS: $4.23 vs analyst estimates of $4.02 (5.3% beat) Adjusted EBITDA: $329 million vs analyst estimates of $315.8 million (28.6% margin, 4.2% beat) Revenue Guidance for Q3 CY2025 is $956 million at the midpoint, below analyst estimates of $1.07 billion Operating Margin: -37.2%, down from 29.3% in the same quarter last year due to noncash impairment charges related to the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill of $430 million and $307 million, respectively, during the three months ended June 30, 2025 Free Cash Flow Margin: 23.4%, down from 34.6% in the same quarter last year Constant Currency Revenue rose 2.7% year on year (4.8% in the same quarter last year) Market Capitalization: $5.9 billion Company Overview Founded in 2002, Crocs (NASDAQ:CROX) sells casual footwear and is known for its iconic clog shoe. Revenue Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Crocs's 28.3% annualized revenue growth over the last five years was exceptional. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Crocs's recent performance shows its demand has slowed significantly as its annualized revenue growth of 3.2% over the last two years was well below its five-year trend. We can better understand the company's sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 3.6% year-on-year growth. Because this number aligns with its normal revenue growth, we can see that Crocs has properly hedged its foreign currency exposure. This quarter, Crocs grew its revenue by 3.4% year on year, and its $1.15 billion of revenue was in line with Wall Street's estimates. Company management is currently guiding for a 10% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to decline by 1.8% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and implies its products and services will face some demand challenges. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Crocs's operating margin has shrunk over the last 12 months, but it still averaged 15.9% over the last two years, solid for a consumer discretionary business. This shows it generally manages its expenses well, and its elite historical revenue growth also suggests its margin dropped because it ramped up investments to capture market share. We'll keep a close eye to see if this strategy pays off. In Q2, Crocs generated an operating margin profit margin of negative 37.2%, down 66.5 percentage points year on year due to noncash impairment charges related to the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill of $430 million and $307 million, respectively, during the three months ended June 30, 2025. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Crocs's EPS grew at an astounding 47.4% compounded annual growth rate over the last five years, higher than its 28.3% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't improve. In Q2, Crocs reported adjusted EPS at $4.23, up from $4.01 in the same quarter last year. This print beat analysts' estimates by 5.3%. Over the next 12 months, Wall Street expects Crocs's full-year EPS of $13.35 to shrink by 4.5%. Key Takeaways from Crocs's Q2 Results It was encouraging to see Crocs beat analysts' adjusted operating income expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, its revenue guidance for next quarter missed and its constant currency revenue fell slightly short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 27.3% to $76.55 immediately after reporting. Is Crocs an attractive investment opportunity at the current price? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. 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Yahoo
07-08-2025
- Business
- Yahoo
Crocs Gives Weak Quarterly Outlook, Decides Against Reinstating 2025 Guidance; Shares Drop Intraday
Crocs (CROX) said Thursday it expects third-quarter revenue to fall year over year, while the shoema Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
