Crocs, Inc. (CROX) Hits Fresh High: Is There Still Room to Run?

A strong stock as of late has been Crocs (CROX). Shares have been marching higher, with the stock up 13.4% over the past month. The stock hit a new 52-week high of $141.28 in the previous session. Crocs has gained 65.1% since the start of the year compared to the -8.4% gain for the Zacks Consumer Discretionary sector and the 1.2% return for the Zacks Textile - Apparel industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 30, 2026, Crocs reported EPS of $4.55 versus consensus estimate of $4.32 while it beat the consensus revenue estimate by 2.79%.

For the current fiscal year, Crocs is expected to post earnings of $13.86 per share on $4.1 in revenues. This represents a 10.79% change in EPS on a 1.41% change in revenues. For the next fiscal year, the company is expected to earn $14.97 per share on $4.22 in revenues. This represents a year-over-year change of 8% and 2.87%, respectively.

Valuation Metrics

While Crocs has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Crocs has a Value Score of B. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 10.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.8X. On a trailing cash flow basis, the stock currently trades at 9.6X versus its peer group's average of 9.9X. Additionally, the stock has a PEG ratio of 1.17. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Crocs currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Crocs fits the bill. Thus, it seems as though Crocs shares could still be poised for more gains ahead.

How Does CROX Stack Up to the Competition?

Shares of CROX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Revolve Group, Inc. (RVLV). RVLV has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of B.

Earnings were strong last quarter. Revolve Group, Inc. beat our consensus estimate by 30.00%, and for the current fiscal year, RVLV is expected to post earnings of $0.85 per share on revenue of $1.36 billion.

Shares of Revolve Group, Inc. have gained 17% over the past month, and currently trade at a forward P/E of 30.86X and a P/CF of 29.09X.

The Textile - Apparel industry may rank in the bottom 77% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for CROX and RVLV, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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