Crocs stock wavers after Loop Capital upgrades shares to Buy

Yahoo Finance Live anchors discuss Loop Capital upgrading Crocs share to Buy.

Video transcript

- But from Tesla to now shoes. Crocs shares in focus. You're seeing an upgrade to buy from hold by Loop Capital analyst Laura Champine, longtime retail analyst in this space. Interesting to see this upgrade ahead of the back to school shopping season. But Crocs shares have been absolutely hammered year to date, I believe down more than 60%.

The shares were just trading at a 52-week low. Like a lot of other companies, like we've been talking about with Tesla, Crocs also battling high levels of inflation. And I think, Brad, they're coming up against that point where they're not able to raise prices enough to offset the inflation. You're not paying $150 for a pair of Crocs. I love them. But you're not paying 150 bucks.

- Not $150. So you might not see as many of the collaborations perhaps that really drive up the price for some of the special limited edition Crocs that you may even find on some retail-- resale sites, rather. But even more so here, there still is a lot of bullish sentiment in the market on Crocs. Looking at some of the data from MarketBeat, moderate buy. An average price target right now in the Street of $134.22 a share. You compare that to where we're sitting right now at $47 a share. I mean, there's still some significant optimism here more broadly here.

But I think, what's it going to have to whether? It's going to have to whether a consumer mindset that might not be purchasing in cyclicality the same level of shoes or even footwear apparel. And for those of you that already have your Crocs out there, do you need another color or another pair? I think that's a question that some consumers might be thinking through right now.

And I think for Crocs, it's either going to come back to, all right, how do we get more creative with making sure that people buy more Jibbitz, or in some of the other shoe and footwear categories that they've gotten into beyond just the sandals, you know, where do we start to see some of that reinvestment in their own business and that strategy? And will investors reward that spending on their own line of products as well?

- I generally have no strong views on Crocs. But I think they serve a strong purpose in the retail market and on the feet of consumers. Well let's keep in mind, within the past few weeks, we have seen a warning from Nike and now this upgrade on Crocs. So if you're out there trying to invest in the retail space, it is what a lot of veterans would call a stock picker's market.