Crocs stock trades at a discount, facing growth and profitability risks

From Zacks Investment Research: 2025-06-26 12:44:00

Crocs, Inc. (CROX) trades at a significant discount compared to the industry average, with a forward P/E ratio of 7.50X. While this may attract value investors, caution is advised due to possible growth concerns. CROX stock has fallen 9% YTD, outperforming its industry but underperforming the sector. The company continues to see growth in its clogs and sandals categories, with strong demand for iconic products like the Classic Clog. However, challenges from the HEYDUDE brand and rising costs pose risks to profitability. CROX stock carries a Zacks Rank #3 (Hold).

In comparison, Duluth Holdings (DLTH), The Marcus (MCS), and Atour Lifestyle Holdings Limited (ATAT) are better-ranked stocks in the same space. DLTH has a Zacks Rank #2 (Buy) with an 18.3% increase in 2025 EPS estimated. MCS has a Zacks Rank of 2 with a 5.2% sales increase forecasted for 2025, and ATAT, also with a Zacks Rank of 2, expects a 30.5% sales increase and 24% EPS increase for 2025.



Read more at Zacks Investment Research: Crocs Stock Trades at a Bargain: Is It Time to Buy or Step Back? – June 26, 2025