Wait for a Pullback to Buy Shares of Crocs


Investors may want to consider a position in Crocs (CROX) on a pullback.

The stock just gapped to $133.56 on another blowout earnings report.  The company earned $195.3 million, or $4.93 a share in Q2 2021 from 83 cents year over year. Revenue was up 93% to $640.8 million.  Analysts were looking for EPS of $1.59 on sales of $567 million.

In addition, according to Briefing, “Crocs is guiding to Q3 revs of $579-615 mln, well ahead of the $508.6 mln consensus. This summer is shaping up to be a phenomenal one for Crocs. Boosting digital sales has been a top priority in recent years. The company has been investing to improve its digital capabilities/infrastructure and to bolster and personalize the digital experience from a customer perspective. Digital sales grew 25% on top of an elevated 2020 comp to represent 36% of Q2 sales compared to 56% last year and 33% in 2019.”

With sales rebounding, we anticipate another blowout quarter ahead.

However, don’t buy CROX just yet.  The stock has become technically overbought on RSI and Williams’ %R.  Consider a position on a pullback.


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