Send me real-time posts from this site at my email

Why Crocs Stock Is Rising Today

What happened

Shares of the casual footwear company Crocs (NASDAQ: CROX) spiked this morning after an analyst upgraded the company's stock from a hold rating to buy.

Investors jumped on the positive sentiment and have sent Crocs' share price climbing 5.3% as of 10:30 a.m. ET.

So what

Loop Capital analyst Laura Champine upgraded Crocs' stock to buy this morning and put a price target on the stock of $75.

Image source: Getty Images.

Champine said in an investor note that despite a "dodgy macro environment," she thinks investors have wrongly lumped the company in with pandemic stocks and have shunned the footwear company too much. Crocs stock is down 56% over the past 12 months.

Champine believes the sell-off has created a buying opportunity for Crocs stock, saying, "Our checks point to healthy sell-through and normal discounting at the end of the quarter." She also said that Crocs' recent purchase of the Italian footwear company Hey Dude will add to the company's long-term growth.

Now what

Investors are looking for any signs of good news for stocks right now, especially in the consumer goods segment. With today's buy rating, Crocs shareholders got the positive news they were looking for, but they should also plan for more share price swings.

Investors are still trying to figure out what will happen with inflation, interest rate hikes from the Federal Reserve, and the economy in general. All of this uncertainty is likely to put continued pressure on stocks in the short term.

10 stocks we like better than Crocs
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Crocs wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of June 2, 2022

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends Crocs. The Motley Fool has a disclosure policy.


Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue