Is Croc’s (CROX) an Attractively Valued Stock?

Choice Equities Capital Management, a hedge fund manager, recently released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund lost -1.8% on a net basis bringing year-to-date gain to +5.5% compared to the Russell 2000’s +9.3% gain for the quarter and +11.2% gain for YTD. The S&P 500 generated a quarterly gain of +5.9% taking year-to-date gains to +22.1%. Since its inception in 2017, the fund has generated annualized gains of +15.0% versus +7.8% and +14.5% returns for the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Choice Equities Capital Management highlighted stocks like Crocs, Inc. (NASDAQ:CROX) in the third quarter 2024 investor letter. Headquartered in Broomfield, Colorado, Crocs, Inc. (NASDAQ:CROX) engages in the footwear and accessories business. The one-month return of Crocs, Inc. (NASDAQ:CROX) was -22.12%, and its shares gained 26.80% of their value over the last 52 weeks. On November 5, 2024, Crocs, Inc. (NASDAQ:CROX) stock closed at $105.22 per share with a market capitalization of $6.132 billion.

Choice Equities Capital Management stated the following regarding Crocs, Inc. (NASDAQ:CROX) in its Q3 2024 investor letter:

“MGNI and Crocs, Inc. (NASDAQ:CROX) – Magnite, Inc. and Croc’s Inc. remain holdings in the portfolio and were recently discussed in detail on the Yet Another Value Blog podcast, which can be found here: YAVB podcast. As discussed herein, both remain well-positioned in their respective industries and represent attractive values on anticipated cash flows in years to come.”

A busy retail store full of customers trying on a wide range of footwear.

Crocs, Inc. (NASDAQ:CROX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Crocs, Inc. (NASDAQ:CROX) at the end of the second quarter which was 36 in the previous quarter. In the third quarter, Crocs, Inc. (NASDAQ:CROX) consolidated enterprise revenues of $1.1 billion grew 2% to prior year. While we acknowledge the potential of Crocs, Inc. (NASDAQ:CROX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Crocs, Inc. (NASDAQ:CROX) and shared the list of high growth high margin stocks to invest. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.