Crocs: in League of Its Own Thanks to re-opening fueled […]
Counting our W’s $CROX
At LikeFolio, sometimes we pound the table.
When the data is screaming, personal experiences line up, and the stock looks ripe for disruption.
Opportunities like this are ones we live for.
And recently, we’ve had quite a few.
So now it’s time to count our W’s.
Not because we want to be braggadocios (which we do love) but because we want to refine our hunting skills.
And boy did we hit the bullseye with one of our favorite names last week: CROX.
We hand-picked CROX to be our Trade of the Week, which earned members a +135% profit on an earnings trade in just 4 days!
For us, the bearish writing was on the wall. LikeFolio data was practically screaming at us.
Just look at this chart:
Our beloved CROX was LAGGING peers – by a lot!
Web traffic was slowing down in a big way, as the footwear king was being knocked off its comfortable/ugly shoes throne by Ugg and Hoka parent, DECK.
In addition, consumer sentiment levels had taken a plunge to 66% positive – 4 points lower YoY and 12 points lower from highs achieved earlier in 2023.
Lastly, the market did NOT see this coming.
Expectations were high.
Headlines looked like this heading into earnings:
As traders, we were drooling.
We even featured the set up in detail on our members-only founders call (listen to it here if you need a refresh).
But here’s where the learning comes in.
CROX wasn’t our only big win – we added a handful of other feathers to our cap.
Like these one-day stock post earnings moves in our direction:
- Shopify (SHOP): +22%
- Pinterest (PINS): +19%
- Spotify (SPOT): +10%
For each of these BIG WINS, there are a couple of common threads.
- Each of these companies were majorly outperforming or underperforming peers.
- Happiness levels were extreme (HIGH or LOW).
- LikeFolio data contrasted with market expectations.
These three factors created a perfect storm for investors – and massive gains.
While it’s certainly important to assess when things don’t go our way, it’s equally as important to assess when we absolutely nail something.
So we can repeat. Again and again.
Happy hunting!