CROX Crocs Inc

Crox, Inc. (CROX) has been bucking the weak market, recently hitting a new multi-year high after reporting a solid 26% earnings surprise in late April. With estimates on the upswing and a bullish growth projection, this Zacks #1 rank stock is a comfortable take on momentum.

Company Description

Crox, Inc. designs and sells footwear, apparel and accessories for men, woman and children worldwide. The company was founded in 1999 and has a market cap of $2.07 billion.

CROX has been a strong performer in 2011, handily outperforming the market with a 35% gain. The bullish movement has been predicated on impressive growth, last on display with strong Q1 results from late April that came in ahead of expectations.

First-Quarter Results

Revenue for the period was up 36% from last year to $227 million. Earnings also looked good, coming in at 24 cents, 26% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 60% over the last four quarters.

The company continued to see strong results across its multiple distribution channels, with wholesale sales up 37% to $165 million and Internet sales up 35% to $17 million.

Crox also boasts strong geographic diversity, with Americas up 35% to $100 million and Europe up 42.5% to $54 million.

Financial Profile

CROX has seen its balance sheet strengthen over the last year as well, with cash and short-term investments up $19 million to $115.5 million against total debt of just $7 million.

Estimates

We saw some decent movement in estimates off the good quarter, with the current year adding 5 cents to $1.11. The next-year estimate is pegged at $1.38, a bullish 24% growth projection.

Valuation

But in spite of recent gains, CROX still has value, trading with a PEG ratio of .88, safely below the benchmark for value of 1.

12-Month Chart

On the chart, shares have been grinding higher for most of the year, recently hitting a new multi-year high on the good quarter and rising estimates. Look for support from the long-term trend on any weakness, take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.
 
CROCS INC (CROX): Free Stock Analysis Report
 
Zacks Investment Research