Trade-Ideas: Crocs (CROX) Is Today's Pre-Market Mover With Heavy Volume Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Crocs ( CROX) as a pre-market mover with heavy 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 $12.3 million.
  • CROX traded 223,969 shares today in the pre-market hours as of 8:54 AM, representing 22.8% of its average daily volume.

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More details on CROX:

Crocs, Inc., together with its subsidiaries, engages in the design, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children in the Americas, Europe, and Asia. CROX has a PE ratio of 11.7. Currently there are 2 analysts that rate Crocs a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Crocs has been 1.5 million shares per day over the past 30 days. Crocs has a market cap of $1.3 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are down 4.6% year to date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Crocs as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • CROX's revenue growth has slightly outpaced the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 9.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • CROX's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CROX has a quick ratio of 2.43, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for CROCS INC is rather high; currently it is at 55.87%. Regardless of CROX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CROX's net profit margin of 9.71% compares favorably to the industry average.
  • CROCS INC's earnings per share declined by 41.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CROCS INC increased its bottom line by earning $1.44 versus $1.24 in the prior year. For the next year, the market is expecting a contraction of 28.1% in earnings ($1.04 versus $1.44).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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