Bear Market Loses Grip on Crocs as Hammer Chart Pattern Indicates ‘Buy’ Opportunity
May 11, 2023
Trending News ☀️
Crocs ($NASDAQ:CROX) is a publicly-traded American shoe company that specializes in comfortable and stylish footwear. Recently, their stock has been in a bear market – meaning the value was dropping steadily.
However, recent trends have shown a shift in the market and the so-called hammer chart pattern indicates that the bear market may be coming to an end. This shift in the market makes now a great opportunity for investors to ‘Buy’ the stock. The bear market had been controlling the stock for some time, but it appears to be losing its grip. This could be a sign of an upward trend to come and it may be a good time to purchase Crocs stock. Furthermore, the hammer chart pattern indicates that Crocs is likely to perform well in the near future. This pattern is formed when a stock experiences a sharp drop in price but then rallies up to close at or near the starting price. It is believed to be a sign of a potential reversal in the market and suggests that the stock may soon regain its value. Overall, it appears that the bear market is beginning to lose its control on Crocs and this could be a great opportunity for investors to ‘Buy’ the stock. The hammer chart pattern hints at a potential reversal and could be a sign of positive things to come for the company. It appears to be a good time to purchase Crocs stock and potentially reap the benefits of its future success.
Price History
On Wednesday, CROCS saw their stock open at $119.8 and close at $120.1. This indicates that the bear market which has been holding back the company’s share price is starting to lose its grip. Analysts are now saying that this is a “buy” opportunity, citing a hammer chart pattern which appears in the stock’s technical chart.
The pattern suggests that, if the share price can break above the current resistance price, upside potential will increase significantly. With the bear market losing its grip, investors have a great chance to capitalize on this potential. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Crocs. More…
| Total Revenues | Net Income | Net Margin |
| 3.78k | 616.94 | 16.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Crocs. More…
| Operations | Investing | Financing |
| 681.84 | -107.21 | -622.13 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Crocs. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.6k | 3.63k | 15.62 |
Key Ratios Snapshot
Some of the financial key ratios for Crocs are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 45.9% | 102.3% | 25.7% |
| FCF Margin | ROE | ROA |
| 15.6% | 67.9% | 13.2% |
Analysis
GoodWhale has conducted an analysis of CROCS‘s fundamentals and found that the company has a high health score of 8/10 when considering its cashflows and debt, indicating that it is capable of sustaining future operations in times of crisis. CROCS is strong in growth and profitability, and weak in asset acquisition and dividend payments. Our analysis has classified CROCS as a ‘gorilla’ type of company, one that has achieved stable and high revenue or earnings growth due to its strong competitive advantage. Given these fundamentals, investors who are interested in long-term growth opportunities may be attracted to CROCS as a potential investment. The company’s strong competitive advantage and ability to sustain operations during difficult times make it an attractive option for both growth-minded investors and those seeking stability. More…
Peers
Its competitors are Nike Inc, Skechers USA Inc, and Wolverine World Wide Inc.
– Nike Inc ($NYSE:NKE)
Nike is one of the largest sporting goods companies in the world. They design, develop, and manufacture footwear, apparel, and equipment for a variety of sports and fitness activities. Nike’s market cap as of 2022 is 138.47B. Their return on equity is 25.1%. Nike’s products are sold in over 190 countries worldwide.
– Skechers USA Inc ($NYSE:SKX)
Skechers USA Inc has a market cap of 5.44B as of 2022, a Return on Equity of 10.49%. The company is engaged in the design, development, marketing and sale of footwear for men, women and children.
– Wolverine World Wide Inc ($NYSE:WWW)
Wolverine World Wide Inc is a footwear company that designs, manufactures, and markets a range of shoes for men, women, and children. The company has a market cap of 1.3B as of 2022 and a Return on Equity of 18.81%. Wolverine World Wide is a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol WWW. The company was founded in 1883 and is headquartered in Rockford, Michigan.
Summary
Investors have recently seen Crocs as a good buy, as the stock has witnessed a hammer chart pattern after losing value, indicating support and an upward trend. Analysts have found that this increase in value is due to factors such as strong execution of new product launches, a solid base of loyal customers, and increasing demand from new customers. With the current momentum in its favor, investing in Crocs may prove to be a good decision.
Related Posts
Recent Posts
