After a devastating 2022, a year that saw the S&P 500 decline 19%, investors are looking for things to bounce back quickly. This means finding companies that have promising futures and that are trading at attractive valuations. One such name is Crocs (CROX 1.27%). 

Since reporting its 2022 fourth-quarter financials on Feb. 16, the popular footwear brand has seen its shares slip about 10%. And although they are up 59% over the past six months, the shares are still down nearly 30% from their all-time high. Here's why investors will regret not buying Crocs on the dip.  

Continued business momentum 

It's an accurate assessment to say that Crocs' business was boosted by the COVID-19 pandemic. In 2020 and 2021, revenue jumped 12.6% and 66.9%, respectively, showcasing a sharp top-line acceleration for a company that was struggling for a few years before the health crisis. The heightened consumer interest in comfortable and affordable attire probably deserves some credit here. 

But the strong momentum hasn't abated. For the just-reported full year of 2022, revenue was up 53.7% year over year to $3.6 billion. Crocs' financials were bolstered by the success of casual footwear brand HeyDude, an acquisition that was completed about one year ago, which saw its own sales climb 70% compared to 2021 to nearly $1 billion. On the other hand, revenue for the flagship Crocs brand was up just 14.9% thanks to gains in all three geographic regions. 

Nonetheless, it's hard to argue with these numbers given the softer macroeconomic picture that characterized last year and worried investors. Ongoing inflationary pressures, and the higher interest rates central banks are using to combat rising prices, can discourage consumers from spending and borrowing. This makes Crocs' resilient business model even more impressive. 

What really stands out about this company is not just its ongoing revenue gains in an otherwise difficult operating environment but just how profitable this enterprise is. Crocs' operating margin has trended higher over the past decade, coming in at 23.9% in 2022. This impressive bottom line is why Crocs has been able to repurchase $1.7 billion worth of its stock since 2014, equal to 22% of the current market cap of $7.7 billion. 

Rare mix of growth and value 

Between 2017 and 2022, Crocs' revenue soared at a compound annual rate of 28.3%. And diluted earnings per share swung from a loss of $0.41 to a positive $8.71. The stock has followed suit, skyrocketing 830% over the past five years. This remarkable performance easily crushes that of the S&P 500, which produced a total return of 62% during the same time. 

Looking ahead, the management team is confident in Crocs' ability to continue growing at a rapid clip. They expect annual sales to total $6 billion in 2026. Two of the most important ways to achieve this goal are to boost sales of sandals and further penetrate China, the world's second-biggest footwear market. 

Even Wall Street is optimistic about Crocs' direction. Over the next four years, consensus analyst estimates call for revenue to rise at a compound annual rate of 12.2% between 2022 and 2026, with EPS increasing at a 19.2% average annual clip. 

Usually, investors would rightfully assume that a business with Crocs' tremendous growth history, as well as its bright prospects and outstanding profitability, would result in a share price that is very expensive. Crocs' price-to-earnings (P/E) ratio was under 8 as recently as November. And even after the stock has climbed 72% in the past six months, shares are still trading at a P/E of just 14 right now. This compares quite favorably to the P/E of 18 for the overall S&P 500.  

Based on the favorable long-term outlook of Crocs' business, coupled with the attractive valuation, it might be a good idea to consider investing in the stock.