Crocs, Inc. (CROX) Is Going to Outperform

Crocs has an established foothold in the African continent, which is another source of competitive advantage. The company has 27,000 square feet of wholesale and office facilities in Gordon’s Bay, South Africa and manufacturing facility in Padova, Italy, which is near the Mediterranean Sea and offers easy access to Africa by boat. Crocs’ most popular clogs are suitable for the climate on the African continent and appeal with their durability and easy maintenance. Crocs should be able to capitalize on its easy access to the African market.

On a concluding note

The word Crocs is synonymous with clogs around the world. However, Crocs is still able to grow at a fast pace as the company now offers a year-round collection of over 300 models for men, women, and kids that are sold in nearly 100 countries. Crocs is also licensing its brand to such products as hats, bags, sunglasses, and socks. Compared to S&P 500 and Deckers, Crocs’ common stock trades at a discount and at current levels it could easily double in a 52-week period.

The spring and early summer months are the strongest for Crocs’ sales, and in the past few years, the stock has risen during this period. Finally, the company is exploring a number of growth initiatives, which offer upside potential with limited downside. I am pretty bullish that in the near future the company is not going to disappoint its valued investors, as well as customers.

The article This Casual Footwear Company Is Going to Outperform originally appeared on Fool.com and is written by Abir Karmakar.

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