Stock Market Sell-Off: Is Crocs a Buy?
When Crocs (NASDAQ: CROX) shoes first came on the scene, they were so odd that director Mike Judge featured them in a social satire movie he produced called Idiocracy, which features a deeply satirical look at the future and society. His thought was that the shoes would never catch on, and thus, it would be funny to include them in the movie about future trends. Judge was clearly wrong about the popularity of the shoe, as the company generated $2.3 billion in revenue in 2021. If management is right, there's a lot more upside still to come for the footwear specialist.
Crocs' stock has fallen around 45% from its late 2021 highs. That's a massive decline, but, perhaps, one that was appropriate. At its peak in 2021, the company's price-to-sales (P/S) ratio exceeded 5. After the big price decline, the P/S ratio is down to 1.8 times. While that's not exactly a bargain basement level, it is far more reasonable.
Image source: Getty Images.
Source Fool.com
