2024-07-17 10:08:14 ET
Summary
- Crocs shares have risen over 40% year to date, but the stock still remains undervalued at <10x FY25 P/E.
- The company is growing triple-digits in China, with vast potential to expand in many overseas markets.
- Its major risk that investors have decried is declining sales in its HEYDUDE subsidiary, which the company acquired for a costly sum in 2021.
- Still, this is only ~20% of the overall business, and is distracting attention from the thriving Crocs brand with its superior margin profile and high single-digit growth rates.
Shoemakers this year have been under pressure from weaker results from Nike ( NKE ), but some of the pure-play shoe companies in the market are still offering decent growth prospects for attractive valuations....
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Crocs: Despite Some Challenges, This Shoemaker Is Widely Undervalued