Although still in its turnaround phase, this footwear maker beat analysts’ earnings estimates by eight cents last quarter.
Top Picks Update
Crocs (CROX)
From The Turnaround Letter
Our top pick for 2017, Crocs (CROX), has performed reasonably well over the first half of the year, but we believe it has much farther to go.
The casual footwear company’s operational turnaround is still in its early stages. Margins are beginning to improve, and inventory management is tighter, but revenues are still below where they should be. Management appears to be taking the right steps to reinvigorate sales, but that process will take more time.
With a healthy cash balance and virtually no debt, there is little financial risk to the company, and so investors can be patient with the stock. First quarter results were better than expected, and we believe that trend is likely to continue.
As Wall Street recognizes the improvements at the company, Crocs’ stock should go considerably higher.
George Putnam III, The Turnaround Letter, www.turnaroundletter.com, 617-573-9550, June 29, 2017