3 Reasons CROX Could Quadruple by 2024

Jul 09, 2022

I’ll admit, it’s interesting to be known as “the Crocs guy” in much of the financial industry.

Part of it may be because I ditched my dress shoes for the comfort of Crocs every time I was on stage for the better part of a year…

… but it was just as much because LikeFolio’s consumer demand data was pounding the table on Crocs (CROX) stock back when it was less than $13.

BEFORE its meteoric rise to more than $180 per share late last year. Like many growth stocks, CROX has lost some significant altitude over the past nine months.

It’s pulled back approximately 60% this year alone and is now trading in the mid-$50s.

But just like when CROX was in the low double digits a couple of years ago, LikeFolio’s consumer data is telling us Wall Street has this company very wrong… again.

Here are three reasons we think Crocs will dominate over the next two years — and could reach new all-time highs above $200 per share in the process.

1. Favorable Macro Consumer Trends ALL Line Up for Crocs

Despite economic problems and inflation, the consumer shoe game is stronger than ever.

The chart above displays the year-over-year (YoY) increase in mentions of terms commonly used to describe Crocs. And as you can see from the data, consumers are really interested in the exact kinds of shoes Crocs specializes in: slip-on, comfortable, clunky shoes with a retro vibe.

It’s good to have those kinds of macro tailwinds at your back…

2. Favorable Macro Consumer Trends ALL Line Up for Crocs

When Crocs acquired Hey Dude Shoes earlier this year, Wall Street was skeptical, to say the least.

But at LikeFolio, we’re not interested in what the suits on Wall Street think about a trend… We go straight to the consumer.

And in this case, it looks like Crocs may have picked up a secret weapon in Hey Dude Shoes.

Just look at the impressive increase in consumer buzz for the brand:

That’s not just a growing trend — that’s acceleration of adoption.

This acquisition gives Crocs two distinct advantages moving forward: a second “comfort shoe” brand to differentiate products from its signature rubber clogs, and a fast-growing unit that could be pushing cash to the bottom line much faster and in much greater numbers than Wall Street currently expects.

But consumer buzz isn’t all that CROX has going for it…

3. CROX Consistently Delivers on Earnings

Wall Street currently has little patience for companies whose numbers are falling short of expectations. That’s a hallmark of bear markets.

But Crocs has a history of delivering earnings beats.

The above data from Estimize shows that CROX has exceeded Wall Street earnings estimates in every quarter but one since the beginning of 2019.

That’s consistently strong performance from a company that knows how to execute.

Bottom Line

CROX has consumer tailwinds behind it, a secret weapon in its new acquisition of Hey Dude, and a history of outperforming Wall Street expectations.

This is a wild stock with big, volatile swings — but as history has shown us at LikeFolio, that volatility can create big opportunities for savvy investors with powerful consumer data on their side.