Shares of the casual footwear company Crocs (CROX 2.58%) spiked this morning after an analyst upgraded the company's stock from a hold rating to buy.
Investors jumped on the positive sentiment and have sent Crocs' share price climbing 5.3% as of 10:30 a.m. ET.
Loop Capital analyst Laura Champine upgraded Crocs' stock to buy this morning and put a price target on the stock of $75.
Champine said in an investor note that despite a "dodgy macro environment," she thinks investors have wrongly lumped the company in with pandemic stocks and have shunned the footwear company too much. Crocs stock is down 56% over the past 12 months.
Champine believes the sell-off has created a buying opportunity for Crocs stock, saying, "Our checks point to healthy sell-through and normal discounting at the end of the quarter." She also said that Crocs' recent purchase of the Italian footwear company Hey Dude will add to the company's long-term growth.
Investors are looking for any signs of good news for stocks right now, especially in the consumer goods segment. With today's buy rating, Crocs shareholders got the positive news they were looking for, but they should also plan for more share price swings.
Investors are still trying to figure out what will happen with inflation, interest rate hikes from the Federal Reserve, and the economy in general. All of this uncertainty is likely to put continued pressure on stocks in the short term.