Crocs Update Post Q4 Earnings - Still A Cheap Buy

David B. McMillan168 FollowersFollow5ShareSavePlay(7min)CommentsSummaryCrocs delivered a strong Q4, beating expectations on both revenue and EPS, and raised full-year guidance.CROX remains undervalued with a new price target of $173, reflecting a 76% upside from current levels.Significant debt repayment and $180M in share repurchases, alongside robust international growth and HEYDUDE stabilization, reinforce the investment case.Cost-savings initiatives and sector-leading profitability metrics further support a strong buy rating despite high short interest. clovercity/iStock via Getty Images Introduction In my last article on Crocs (CROX), I recommended buying the stock while it was still cheap. After today's strong earnings report, CROX is up 19% to $98.46 per share. The good news, however, is that the stock remains cheap. (If you're interested in a deepThis article was written byDavid B. McMillan168 FollowersFollowMy name is David B McMillan and I am an investor interested in fundamental valuation. My philosophy is fundamental investing - I seek to identify underpriced securities relative to their potential future cash flows. I also use tactical allocation, investing more aggressively when equity prices are lower, and more conservatively when they are higher. I have a BS in Physics and BA in Philosophy from UCSB, and am currently a CFA Level 2 candidate. I am mostly interested in covering stocks in the aerospace and defense sector, but I am also interested in retail and tech companies. I have a 12 year investing track record, with documented investments in AI, tech, and crypto themes before they were widely understood - NVDA in 2017, 8000 percent gain; PLTR at IPO, 1870 percent gain; AMD in 2017, 3700 percent gain; TSLA in 2016, 3400 percent gain. Had all of Mag 7 in my portfolio by 2018, before those stocks were called the Mag 7. My current demo portfolio, started in April 2025 with about $8k of my my own capital, is so far achieving a Sharpe ratio of 3.49 compared to IVV of 2.42 in the same time period. My average time-weighted return is 0.30 percent per day vs IVV at 0.14 percent per day.Analyst’s Disclosure: I/we have a beneficial long position in the shares of CROX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I have a very few number of shares. No plans to buy or sell in the near future.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.