IBD Stock Analysis
- Crocs stock hit a new high after reporting strong earnings.
- Shares cleared a 95.78 entry in a gap-up breakout.
- The relative strength line also spiked to a new record.
Industry Group Ranking
* Not real-time data. All data shown was captured at
11:55AM EDT on
The shoemaker has seen its popularity soar during the Covid-19 pandemic as Americans shed their work attire for a more comfortable wardrobe.
Its foamy rubber clogs have a cultlike following on the Gen Z-focused TikTok social media app. Fans were eager to grab co-branded Justin Bieber and Latin Pop star Bad Bunny clogs with the shoes selling out in just over an hour.
Crocs also has collaboration deals with rapper Post Malone and country singer Luke Combs.
Early Tuesday, Crocs reported adjusted earnings shot up 577% to $1.49 per share, crushing estimates for 88 cents. Revenue surged 64% to $460.1 million, also beating estimates for $415.4 million. Digital sales jumped 75.3% as customers turned to online shopping during the pandemic.
Looking ahead, Crocs sees Q2 sales growing 60%-70% year over year, well above the 40% growth rate analysts forecast. It also sees 2021 sales growing 40%-50%, nearly double views for 24.6%.
Crocs Stock Technical Analysis
Crocs stock shot past a prior 86.50 buy point from a consolidation. But in a gap-up breakout, investors can use an entry of 95.78, which is the high of the first five-minute bar on an intraday chart, according to MarketSmith chart analysis.
The relative strength line, which tracks performance vs. the S&P 500 index, is at a new high too, confirming the breakout. And volume is extremely heavy.
Crocs stock has a C+ Accumulation/Distribution Rating, which indicates slightly more buying than selling by institutional investors over the last 13 weeks.
Other fundamentals are more solid, including a 97 Composite Rating out of 99 and a best-possible EPS Rating of 99. The Composite Rating compiles scores on key fundamental and technical metrics: earnings and sales growth, profit margins, return on equity, and relative price performance. Investors should focus on stocks with a Composite Rating of 90 or higher.
Crocs is the No. 2 stock in IBD’s Apparel-Shoes group.
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