CROX Crocs Inc

Crocs, Inc. (CROX) continues to rebound from some tough losses in 2009 as shares remain within striking distance of the recent multi-year high just shy of $20. With four consecutive earnings surprises and a bullish growth projection, this Zacks #2 rank stock is kicks up the momentum factor a notch or two.

Company Description

Crocs, Inc. and its subsidiaries designs and sells a line of specialty footwear and accessories for men, woman and children worldwide. The company was founded in 1999 and has a market cap of $1.27 billion.

A lot of analysts and investors wrote Crocs off after its share price took a beating in 2008 and early 2009. But the company has proven to be quite resilient since, recently hitting a new multi-year high after reporting strong Q4 earnings in late February that came in ahead of expectations.

Fourth-Quarter Results

Revenue for the period was up 32% from last year to $179 million. Earnings also looked good, coming in at 5 cents per share, 150% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 204% over the last four quarters.

The company saw a fairly balanced performance from its different channels, with Wholesale sales up 27% from last year to $98 million and Retail sales up 36% to $60 million. Internet sales saw the biggest gain, up 44% to $22 million.

From a geographic perspective, it's largest segment, Americas, was up 36% to $94 million. Its smallest segment, Europe, was up 37% to $23 million.

Financial Profile

Moving forward, the company will benefit from its strong financial profile, with cash and equivalents almost doubling from last year to $146 million against a total debt load of less than $2 million.

Estimates

We saw some decent movement in estimates off the good quarter, with the current year adding 6 cents to $1.05 while the next-year estimate gained 11 cents to $1.32, a bullish 25% growth projection.

Valuation

But in spite of the gains, the valuation picture still looks great, with a PEG ratio (PE/Growth) of .72%, well below the benchmark for value of 1.

6-Month Chart

On the chart, shares are trading just below the recent multi-year high at $19.61 after almost doubling in the last 12 months. Look for support from the trend line on any weakness. Take a look below.