Fashionable Investment? A Closer Look At The Unfashionable Crocs (CROX)

No matter how hard I wished it, Uggs still haven’t gone away. And although I can take relief in the ugg-less-ness of the summer months, it comes at a terrible price: Crocs.

I’m sure most readers have a pair, but even so I’m sure we can all agree, on some level, that they’re horrendous. And while I’m at it, if you own a pair in highlighter yellow, please, for the love of all that is good and fashionable in this world, bury them. My poor eyes just can’t take it.

My pleas for sensible apparel choices aside, Crock stock is an undeniably fashionable investment.

When Crocs (CROX) emerged onto the scene in 2002 I admit that I was one of the many hopefuls who thought they’d go away as fast as men in girl jeans. A blip in the trends we’d all laugh about soon after. 

Investors agreed. Articles littered the internet with titles such as: “Don’t get caught with your Crocs Down,” “Crocs…The Emperor’s New Shoes,” and best of all: “Crocs Makes a Great Toilet Seat.”

Alas, Crocs are here to stay. Headlines have altered course: “4 Reasons to Try On Crocs Stock,” “Crocs Reaches New 52-Week High,” and “Crocs And Shoe Stocks Stomp Pessimists And March To Multi-Year Highs

Peter Cohan of InvestorPlace writes, “Crocs went public in February 2006 and enjoyed a tremendous upward run that lasted until the October 2007. During that time, Crocs stock was on a tear that took it from $13.28 to nearly $70 — a compound annual growth rate of 179%.”

It didn’t last. The stock plunged back down to $1.11 that October (2007) in the face of cheap knock-offs, but it has been steadily recovering since. Today the stock rests at $31.50.

In fact, Crocs has expanded their product line to include more, ahem, fashionable and practical options ranging from sandals, flats, and lace up sneakers to hiking boots. They’ve also been riders of trends, capitalising on unique details such as shoe charms and the newly introduced Chameleons Translucent shoes that change colour in the sunlight. What kid can resist?

The question remains if Crocs still has more growing to do. If you were looking for more 300% stock bursts from this company, you’d probably be disappointed. However, according to Cohen, “a smaller, albeit positive, return may still be possible.”

To help you analyse this company relative to its competitors we’ve attached the tools below.

As the Turbo Chart shows, CROX has outperformed the S&P 500 index over the last year:

Wall Street analysts are also optimistic on the company’s outlook. As a group, they have a “Moderate Buy” rating on the stock:

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