Crocs Shares Popped: What You Need to Know

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Does Crocs (Nasdaq: CROX  ) make Air Jordans? I think I know the answer, but I've got to ask anyway -- because this morning, I'm watching in wonderment as Crocs shares jump 15% and hang ten.

So what: Crocs reported Q2 earnings yesterday evening, and what an quarter it was. Sales surged 30%, while profits sprinted ahead 72% in comparison to Q2 2010.

Now what: And Crocs isn't done yet. Management tells us to expect another 30% jump in sales during this current quarter. Sales should be in the $280 million range, with profits hitting $0.40 per share. Management says Crocs has its "most diverse product line ever," and consumers seem to be snapping up Crocs by the cart-load.

As for whether you should buy it, though ... well, I admit the stock looks kind of pricey at 25 times trailing earnings. On the other hand, back-to-back 30% sales-gain quarters could put the lie to analyst predictions of 12.5% long-term earnings growth at Crocs. If this company keeps this up much longer, Wall Street's just going to have to raise its expectations -- with analyst upgrades following, and in all likelihood, further price pops for Crocs.

Bears versus bulls -- who will carry the day? Add Crocs to your Watchlist and find out.

For the time being, Fool contributor Rich Smith does not either own (or short) shares of Crocs. The Motley Fool has a disclosure policy. Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1527021, ~/Articles/ArticleHandler.aspx, 10/24/2016 2:54:38 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,227.55 81.84 0.45%
S&P 500 2,150.90 9.74 0.45%
NASD 5,304.09 46.69 0.89%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 2:38 PM
CROX $7.96 Up +0.10 +1.27%
Crocs CAPS Rating: **