Stock analysis – CROX
CROX has recently been included in my portfolio due to its impressive fundamental data and strong technical performance throughout the macroeconomic headwinds.
Fundamental picture
In the last 3 years CROX earnings per share (EPS) has surged 117% and sales have climbed 43%. These exciting numbers are backed up with consensus estimates being revised higher each quarter, indicating an upward trajectory. In addition, the Return on Equity value is 113% while the EBITDA margin is sitting at 28%. These values are encouraging as they show the company is very efficient at returning profit from investment in a highly competitive industry. A cautionary note should be added due to the high debt held by CROX, which could become increasingly problematic in a high interest environment. Although this requires monitoring, the high earning power of CROX should allow them to manage their debt load effectively.
Relative strength
A clear sign of an emerging group leader is strong price action in the face of a retreating broader market. The most recent downturn in the broader @Nasdaq and @S&P500 markets has not been reciprocated by CROX. In the previous month the broader markets have dropped approximately 10% while CROX has gained almost 15%. This is signal of institutional accumulation during a time of fear.
Inflection point
The fundamental picture tells you what to buy, whereas the technical picture tells you when to buy.
CROX is in a confirmed uptrend as shown by the traffic light lines in the graph. The green (50-day MA) is above the orange (100-day MA) which in turn in above the red (200-day MA). This trend is backed up by the RSI line operating in the upper half of the (purple) graph. The buy point is indicated by the recent breakout from the consolidation channel at the same time as the bullish MACD cross. This indicates the momentum has shifted from consolidation to accumulation and was the exact point my portfolio started buying.
As always, do your own research and remember that risk management is paramount.
Copy me on Etoro --> Username: JM15931 or Josquin Mills
CROX has recently been included in my portfolio due to its impressive fundamental data and strong technical performance throughout the macroeconomic headwinds.
Fundamental picture
In the last 3 years CROX earnings per share (EPS) has surged 117% and sales have climbed 43%. These exciting numbers are backed up with consensus estimates being revised higher each quarter, indicating an upward trajectory. In addition, the Return on Equity value is 113% while the EBITDA margin is sitting at 28%. These values are encouraging as they show the company is very efficient at returning profit from investment in a highly competitive industry. A cautionary note should be added due to the high debt held by CROX, which could become increasingly problematic in a high interest environment. Although this requires monitoring, the high earning power of CROX should allow them to manage their debt load effectively.
Relative strength
A clear sign of an emerging group leader is strong price action in the face of a retreating broader market. The most recent downturn in the broader @Nasdaq and @S&P500 markets has not been reciprocated by CROX. In the previous month the broader markets have dropped approximately 10% while CROX has gained almost 15%. This is signal of institutional accumulation during a time of fear.
Inflection point
The fundamental picture tells you what to buy, whereas the technical picture tells you when to buy.
CROX is in a confirmed uptrend as shown by the traffic light lines in the graph. The green (50-day MA) is above the orange (100-day MA) which in turn in above the red (200-day MA). This trend is backed up by the RSI line operating in the upper half of the (purple) graph. The buy point is indicated by the recent breakout from the consolidation channel at the same time as the bullish MACD cross. This indicates the momentum has shifted from consolidation to accumulation and was the exact point my portfolio started buying.
As always, do your own research and remember that risk management is paramount.
Copy me on Etoro --> Username: JM15931 or Josquin Mills