Is CROX a good stock to buy? We came across a bullish thesis on Crocs, Inc. on Shiven’s Substack by $hiven Dhawan. In this article, we will summarize the bulls’ thesis on CROX. Crocs, Inc.’s share was trading at $120.65 as of June 8th. CROX’s trailing and forward P/E were 34.19 and 8.68 respectively according to Yahoo Finance.
Crocs, Inc. together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and kids under the Crocs and HEYDUDE Brands in the United States and internationally. CROX is positioned as a highly cash-generative footwear company that appears mispriced due to concerns around its HEYDUDE acquisition, shifting distribution mix, and short-term North American softness, while its core brand continues to generate resilient profitability.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
The company operates with industry-leading gross margins of roughly 60% and benefits from a strong direct-to-consumer ecosystem supported by the iconic Crocs brand and its Jibbitz customization platform.
Despite HEYDUDE’s underperformance following its $2.5B acquisition and subsequent write-downs, the market appears to be discounting the strength of the core Crocs franchise, which alone contributes around $1B in operating income. Management has been actively accelerating share buybacks, having reduced the share count by over 10% in recent years, supported by approximately $700M in annual free cash flow and limited capital expenditure requirements.
The ongoing strategic shift toward direct-to-consumer channels, combined with international expansion into new markets such as India and Malaysia, supports long-term brand reach, even as North American wholesale channels soften. Temporary headwinds, including channel transition costs and HEYDUDE integration issues, have compressed margins and created perceived stagnation, despite underlying brand strength and pricing power evidenced through collaborations and digital engagement across TikTok and social platforms.
Valuation remains compressed at roughly 7.5x forward earnings and 7x free cash flow to enterprise value, implying a significant disconnect versus peers trading near 17.8x. Based on mid-cycle earnings of $13.48 per share and a peer multiple of 17.73x, the implied valuation reaches $239 per share versus a current price near $100, suggesting 139% upside.
Previously, we covered a bullish thesis on Crocs, Inc. (CROX) by Taylor Nichols in April 2025, which highlighted record 2024 performance, strong free cash flow generation, aggressive buybacks, and a persistent valuation gap versus footwear peers despite industry-leading margins. CROX’s stock price has appreciated by approximately 34.86% since our coverage. Shiven Dhawan shares a similar view but emphasizes DTC transition dynamics, HEYDUDE underperformance, and North American channel weakness while still projecting a rerating toward $239 per share.
Crocs, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held CROX at the end of the first quarter which was 40 in the previous quarter. While we acknowledge the risk and potential of CROX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CROX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
