Why did Crocs shares surge on Tuesday? A key upgrade amid a broader rally

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Crocs (NASDAQ:CROX) was among the market’s leaders on Tuesday after an important upgrade from Loop Capital in premarket trading.

Shares of the footwear and apparel manufacturer rose over 12% in Tuesday’s trading session, rebounding sharply from the prior week wherein shares touched a 52-week low. The broader rebound on the day was led by many stocks that have been laggards so far in the year, such as Etsy and Norwegian Cruise Line Holdings, making Crocs’ (CROX) status as an outperformer stand to reason.

Adding to upward momentum, Loop Capital offered a bullish review of the company’s prospects and raised its estimates to motivate a new “Buy” rating on shares.

We are willing to step in despite the dodgy macro environment,” a note to clients on Tuesday read. “Our checks point to healthy sell-through and normal discounting at the end of the quarter. We think the Hey Dude acquisition may accelerate the overall long-term growth rate given CROX's ability to sell the brand into its legacy distribution, and we are seeing some success in the family channel.”

Read more about the firm’s “Buy” thesis on Crocs.

Comments

[Federico Cuneo]

I checked CROCS in Google Trends over the weekend and the previous week it had the highest score in interest worldwide for the last 5 years!!! I bought 600 shares yesterday, I believe their business is booming, everywhere I see people are wearing Crocs.

[Teseye]

People will be shocked with the q2 ER… CROX products are selling even more than during Covid. When they report revs over a billion… the worries about being a covid “fad” will be put to bed.

[Jon Brien]

Crocs and Bitcoin. Like the old saying goes you'll never go broke underestimating the tastes of the American public.

[zito]

Maybe CROX is one of the few retails you can own in this environment. Staying long like the risk reward