Crocs trending lower as the market moves higher
Casual shoe manufacturer Crocs (Nasdaq: CROX) has not been participating in the 2019 rally, at least it hasn’t up until now. The stock has been trending lower since early January and is down just over 21% on the year.
Crocs has rallied in the last few weeks since its June 19 low, but that rally has only brought the stock up to its 50-day moving average and the trend line could act as resistance now.
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We see that the rally brought the daily stochastic readings out of oversold territory and they just touched overbought territory earlier this week. The indicators have since turned lower and made a bearish crossover on June 11.
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The Tickeron Trend Prediction Engine generated a bearish signal for Crocs on June 10 and the signal showed a confidence level of 75%. The signal is predicting a decline of at least 4% within the next month and previous predictions on the stock have been successful 90% of the time.
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The company has struggled in recent years with flat earnings and sales over the last three years. The management efficiency ratings are mixed with a solid ROE of 33.4%, but the profit margin is only 6.5%.
CROX's Stochastic Oscillator is remaining in oversold zone for 21 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
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Notable companies
The most notable companies in this group are Nike (NYSE:NKE), Skechers USA (NYSE:SKX), VF Corp (NYSE:VFC), G-III Apparel Group Ltd (NASDAQ:GIII), Canada Goose Holdings (NYSE:GOOS), Lakeland Industries (NASDAQ:LAKE).
Industry description
Apparel/footwear might be slightly more ‘cyclical’ in the largely non-cyclical category of non-durables. While digital giants like Amazon have been rapidly expanding their presence, traditional clothing/footwear retailers have also been bulking up their online presence in recent years, to milk the burgeoning trend of online shopping among consumers across the globe. The apparel and footwear retail market was valued at around $ 360 billion in 2018, and this figure was expected to reach about $386 billion by 2020 (according to a Statista report). NIKE, Inc, V.F. Corporation and Under Armour, Inc. are some of the companies with the largest U.S. stock market caps in this segment.
Market Cap
The average market capitalization across the Apparel/Footwear Industry is 6.29B. The market cap for tickers in the group ranges from 1.66K to 140.24B. NKE holds the highest valuation in this group at 140.24B. The lowest valued company is SQBGQ at 1.66K.
High and low price notable news
The average weekly price growth across all stocks in the Apparel/Footwear Industry was 2%. For the same Industry, the average monthly price growth was 1%, and the average quarterly price growth was 3%. TALN experienced the highest price growth at 59%, while DLAPQ experienced the biggest fall at -57%.
Volume
The average weekly volume growth across all stocks in the Apparel/Footwear Industry was -9%. For the same stocks of the Industry, the average monthly volume growth was 21% and the average quarterly volume growth was 5%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 49
P/E Growth Rating: 55
Price Growth Rating: 60
SMR Rating: 64
Profit Risk Rating: 80
Seasonality Score: -4 (-100 ... +100)