Buying the dip on this footwear stock using options after 'overdone' sell-off

Written by Emily J. Thompson, Senior Investment Analyst
Source: CNBC
Updated: 08-12
5mins
AI Stock Picker
  • Stock Performance: Crocs' stock fell nearly 30% following cautious guidance despite an earnings beat, with analysts providing mixed views but maintaining price targets above current trading levels.

  • Trade Strategy: A bullish options strategy involving a $76-$77 bull call spread is proposed, aiming for a potential 100% return if the stock reaches or exceeds $77 by expiration.

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CROX.O
$77.140-26.245%Past 6 months
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Analyst Views on CROX
Wall Street analysts forecast CROX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CROX is 88.70 USD with a low forecast of 67.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
up
10.43% Upside
5 Buy
4 Hold
1 Sell
Moderate Buy
up
10.43% Upside
Current: 80.320
sliders
Low
67.00
Averages
88.70
High
100.00
UBS
Neutral
downgrade
$110 -> $85
2025-08-11
Reason
UBS lowered the firm's price target on Crocs to $85 from $110 and keeps a Neutral rating on the shares. The firm does not view the post-earnings selloff as a buying opportunity. Crocs' fundamentals are unlikely to bounce back over the medium-term and may continue to get worse, the analyst tells investors in a research note. UBS sees a balanced upside/downside skew for the shares post the pullback.
UBS
Jay Sole
Neutral
downgrade
$110 -> $90
2025-08-10
Reason
UBS analyst Jay Sole lowered the firm's price target on Crocs to $90 from $110 and keeps a Neutral rating on the shares. The firm does not view the post-earnings selloff as a buying opportunity. Crocs' fundamentals are unlikely to bounce back over the medium-term and may continue to get worse, the analyst tells investors in a research note. UBS sees a balanced upside/downside skew for the shares post the pullback.
Stifel
Buy
to
Hold
downgrade
$127 -> $85
2025-08-08
Reason
Stifel downgraded Crocs to Hold from Buy with a price target of $85, down from $127. The firm believes the thesis on the shares is shifting amid limited visibility into sales growth. It sees muted growth prospects for a revenue recovery for Crocs through 2026. The company's "challenging" U.S. trends are compounded by a pullback on promotions, the analyst tells investors in a research note. Stifel believes Crocs' valuation multiple will stay under pressure until visibility to sustained revenue growth improve.
Williams Trading
Buy
to
Hold
downgrade
$135 -> $80
2025-08-08
Reason
Williams Trading downgraded Crocs to Hold from Buy with a price target of $80, down from $135, post the Q2 report. The company's outlook came in well below consensus estimates due to a weakening low-end to moderate consumer, the analyst tells investors in a research note. The firm sees a "poor" wholesale order books for both Crocs brands and notes its channel checks indicate that traffic within the family channel remains weak.
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About CROX
Crocs, Inc. is engaged in the design, development, worldwide marketing, distribution, and sale of casual lifestyle footwear and accessories for all. The Company's brands include Crocs and HEYDUDE. The Crocs Brand's collection contains Croslite material, a proprietary, molded footwear technology. It also uses Croslite material formulations in connection with material technologies used in its visible comfort collections, such as its LiteRide and Free Feel Technology products. The HEYDUDE Brand offers shoes with an iconic and versatile loafer silhouette with many wearing occasions that focus on casualization, comfort-led functionality and personalization. It sells its products in more than 80 countries, through wholesale and direct-to-consumer channels. Its wholesale channel includes domestic and international multi-brand retailers, e-tailers and others. Its direct-to-consumer channel includes Company-operated retail stores, Company-operated e-commerce sites and third-party marketplaces.

About the author

Emily J. Thompson
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

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