Trade-Ideas LLC identified

Crocs

(

CROX

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Crocs as such a stock due to the following factors:

  • CROX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.4 million.
  • CROX has traded 164,257 shares today.
  • CROX is trading at 2.62 times the normal volume for the stock at this time of day.
  • CROX is trading at a new high 5.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on CROX:

Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories for men, women, and children worldwide. It offers various footwear products, including clogs, sandals, wedges, flats, sneakers, and boots. Currently there are 2 analysts that rate Crocs a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Crocs has been 924,400 shares per day over the past 30 days. Crocs has a market cap of $694.3 million and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.44 and a short float of 11.4% with 11.44 days to cover. Shares are down 10.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Crocs as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Textiles, Apparel & Luxury Goods industry average. The net income has significantly decreased by 32.2% when compared to the same quarter one year ago, falling from -$53.09 million to -$70.17 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, CROCS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CROCS INC is currently lower than what is desirable, coming in at 34.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -33.62% is significantly below that of the industry average.
  • The share price of CROCS INC has not done very well: it is down 23.59% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • CROCS INC's earnings per share declined by 44.3% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CROCS INC reported poor results of -$1.35 versus -$0.33 in the prior year. This year, the market expects an improvement in earnings ($0.19 versus -$1.35).

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