Investors Eye Growth Potential for Crocs, Academy Sports, OLED

The report highlights that while the S&P 500 has seen a remarkable 27% increase, certain stocks like Crocs, Academy Sports, and Universal Display have underperformed. However, with prospects for improved earnings and strategic management plans, these stocks may offer significant upside for 2025.

Date: 15-12-2024

AI Rating: 6

The report provides a mixed picture for Crocs (NASDAQ: CROX), Academy Sports (NASDAQ: ASO), and Universal Display (NASDAQ: OLED). While the S&P 500 is up nearly 27% in 2024, these three companies are not keeping pace, with some even experiencing losses for investors this year.

Crocs is currently trading at a low price-to-earnings ratio of 8. The projected year-over-year revenue growth of 8% indicates stability for its main product line. However, the HeyDude brand is expected to see a significant 15% drop in revenue this year, posing a risk to overall profitability.

Despite high debt from its acquisition of HeyDude, Crocs has a strategy in place to reduce debt and is currently buying back shares, which could support its stock price. Profit margins are stable, allowing for healthy operating income, which is a positive sign for investors.

Academy Sports shares also trade at around 8 times earnings with a net profit margin improvement to over 7%, up from under 2% five years ago. The company plans to open new stores, which could drive further revenue and profit growth. This ambitious plan is expected to enhance earnings, making this stock potentially attractive for future investment.

Universal Display holds over 6,000 patents in OLED technology, currently boasting a net profit margin of 37%. The company has been investing in research and development, aiming for the commercialization of its PHOLED blue technology in the near future, which could unlock new growth opportunities.

Overall, while the stocks mentioned have underperformed in 2024, the strategic movements towards debt management, share buybacks, and anticipated revenue growth paint a cautiously optimistic picture for investors in 2025.

Stocks: CROX ASO OLED