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.