Is Crocs (CROX) a Great Value Stock Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Crocs (CROX). CROX is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.89. This compares to its industry's average Forward P/E of 17.15. Over the past year, CROX's Forward P/E has been as high as 10.77 and as low as 5.62, with a median of 7.89.

Investors should also recognize that CROX has a P/B ratio of 3.17. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.91. CROX's P/B has been as high as 5.29 and as low as 2.52, with a median of 3.37, over the past year.

Finally, investors will want to recognize that CROX has a P/CF ratio of 14.42. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 26.24. Over the past year, CROX's P/CF has been as high as 19.53 and as low as 4.86, with a median of 6.52.

These are only a few of the key metrics included in Crocs's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CROX looks like an impressive value stock at the moment.

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Crocs, Inc. (CROX): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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