Investment Thesis
- Shares of Crocs, Inc. (NASDAQ:CROX) trade close to a 52-week low with the potential to double from current levels.
- The selloff appears to be due to concerns related to its HEYDUDE acquisition, but the market is short-sightedly ignoring the growth acceleration that could come from this highly accretive buy, which Crocs plans to grow into a $1 billion+ brand by 2024.
- Crocs raised annual guidance recently, but the stock reaction at best was lukewarm. However, this may change as Crocs leverages its strong brand equity across new growth categories.
