When Should You Buy Crocs Inc (NASDAQ:CROX)?

Crocs Inc (NASDAQ:CROX), a luxury company based in United States, received a lot of attention from a substantial price increase on the NasdaqGS in the over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Crocs’s outlook and valuation to see if the opportunity still exists. Check out our latest analysis for Crocs

Is Crocs still cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 2% above my intrinsic value, which means if you buy Crocs today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $12.66, there’s only an insignificant downside when the price falls to its real value. Furthermore, Crocs’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.

Can we expect growth from Crocs?

NasdaqGS:CROX Future Profit Dec 27th 17
NasdaqGS:CROX Future Profit Dec 27th 17
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted revenue growth of 0.84% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Crocs, at least in the short term.

What this means for you:

Are you a shareholder? It seems like the market has already priced in Crocs’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on Crocs, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Crocs. You can find everything you need to know about Crocs in the latest infographic research report. If you are no longer interested in Crocs, you can use our free platform to see my list of over 50 other stocks with a high growth potential.