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A winner in the retail space has quietly reached new highs after advancing over 260% in the past 12 months.
Crocs, the shoe brand, roared higher thanks to robust demand. The headline added 10% more on Thursday after reporting quarterly revenue nearly double from a year ago and forecasting further sales growth of 60% in the current quarter.
Even after that run, the name still holds value, according to Gina Sanchez, chief market strategist at Lido Advisors.
“Who knew they had such an incredible trajectory? Sanchez told CNBC’s “Trading Nation” Thursday. “And, they are so cheap compared to other retailers, especially shoes. They are trading at 20 times the EP futures, 22 times behind, that is, they expect to strong growth, and this growth is not yet incorporated into the stock. “
Crocs earned $ 2.23 per share in its quarter ended in June, higher than $ 1.01 a year earlier. It is expected to bring in $ 5.80 per share in profit for the full year, 80% more than last year.
“The children’s market is always interesting because it’s kind of a naturally regenerating market when you buy constantly. The point is that they’ve also expanded their entire retail line into the adult market,” Sanchez added. . “It’s interesting to note a stock that you shouldn’t underestimate. “
The action caught the attention of Blue Line Capital chairman Bill Baruch in 2019. He said he regretted not buying her when she succumbed to the sale of the coronavirus pandemic early in this year. last year and is now looking for an entry point to get started.
“The company did everything right – famous sponsors, they made a big hub of e-commerce during the pandemic and another great profit report here with accelerated growth,” Baruch said during the same segment. “I think there is a place to buy here. I am looking at the techniques.”
He said he would be patient while waiting for a withdrawal. His biggest buy signal would be if the stock drops as low as $ 92, a scenario he considers unlikely here. It would have to drop by 30% to reach this level. He sees a more likely move as a pullback below $ 120, its most recent support level formed by the last breakout.
“If you go below $ 120, we could buy a little between $ 110 and $ 120,” Baruch said.
Crocs closed Thursday at $ 131.93.
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