Investors looking to decrease exposure to AI should look at these two stocks.As we get ready to close the door on 2025, there's been increasing chatter around a possible stock market bubble in artificial intelligence (AI). These stocks dominate the market today, trade at premium valuations, and are priced based on rosy assumptions for future growth.What if these assumption turn out overly optimistic? While there's been a lot of wealth created investing in AI stocks, it's entirely possible a downturn is comi ...

Investors are failing to take the long view on this stock as it trades at a cheap price, compared to its earnings potential.Right now, all investors want to focus on are growth stocks, especially anything related to artificial intelligence (AI). This is turning attention away from opportunities in value stocks, which investors should take advantage of as the calendar turns to 2026.One beaten-down stock that is trading at its lowest cash-flow multiple in five years is Crocs (CROX 0.56%). Here's why the eccen ...

Core Insights - The holiday sales season for 2025-26 in the U.S. has begun, with Thanksgiving and Black Friday being critical days for consumer spending, which is a key indicator of economic conditions and consumer behavior [2][3] Company Summaries Crocs Inc. (CROX) - Crocs has a Zacks Rank of 1 and has seen significant growth in brand awareness through collaborations and product innovations, appealing to a broad demographic [8] - The company is refreshing its product lines and has upcoming launches that are generating consumer interest, with an expected revenue growth rate of 0.4% and earnings growth rate of 3.9% for the next year [11] - The short-term average price target for Crocs represents an increase of 11.2% from its last closing price of $83.07 [11] On Holding AG (ONON) - On Holding also holds a Zacks Rank of 1, providing innovative footwear and sports apparel, with an expected revenue growth rate of 21.2% and earnings growth rate of 79.8% for the next year [12][13] - The short-term average price target for On Holding indicates a potential increase of 45.3% from its last closing price of $41.78 [13] Ralph Lauren Corp. (RL) - Ralph Lauren has a Zacks Rank of 2 and has outperformed the industry, driven by its strategic "Next Great Chapter: Accelerate Plan" focusing on brand elevation and operational agility [14][16] - The company is investing in digital transformation, enhancing consumer engagement, with an expected revenue growth rate of 9.5% and earnings growth rate of 25% for the current year [17] - The short-term average price target for Ralph Lauren suggests a 3.3% increase from its last closing price of $364.50 [17] Kontoor Brands Inc. (KTB) - Kontoor Brands, with a Zacks Rank of 2, is a lifestyle apparel company with an expected revenue growth rate of 11.3% and earnings growth rate of 5.3% for the next year [18][19] - The short-term average price target for Kontoor Brands indicates a potential increase of 31% from its last closing price of $73.69 [19] Boot Barn Holdings Inc. (BOOT) - Boot Barn Holdings has a Zacks Rank of 2 and operates in the lifestyle retail sector, with an expected revenue growth rate of 16.2% and earnings growth rate of 20.5% for the current year [20][22] - The short-term average price target for Boot Barn suggests a 15% increase from its last closing price of $195.76 [22] Industry Insights - The Zacks Retail – Apparel and Shoes industry is currently ranked in the top 26% of Zacks Industry Rank, indicating a favorable outlook compared to the broader market [7] - Consumer confidence is under pressure due to macroeconomic uncertainties, leading to a shift towards value-driven purchases, impacting demand in the apparel and footwear sectors [5][6]

Core Insights - The holiday sales season for 2025-26 in the U.S. is crucial, with Thanksgiving and Black Friday being key days for consumer spending [2] - Despite a challenging economic environment, holiday sales are expected to grow, albeit at a muted rate, leading to recommendations for five apparel and shoe stocks with strong short-term upside potential [3][10] Industry Overview - Consumer spending is the largest component of U.S. GDP, and the holiday season represents the peak period for this spending [3] - The apparel and footwear industry is facing challenges as consumers shift towards value-driven purchases, impacting demand [6] - The Zacks Retail – Apparel and Shoes industry ranks in the top 26% of Zacks Industry Rank, indicating potential for outperformance in the next three to six months [7] Company Highlights Crocs Inc. (CROX) - Crocs has a Zacks Rank of 1 and is experiencing significant growth in brand awareness through collaborations and product innovations [11] - The company is refreshing its product lines and has an expected revenue growth rate of 0.4% and earnings growth rate of 3.9% for the next year [14] - The short-term average price target for CROX indicates an 11.2% increase from its last closing price of $83.07 [14] On Holding AG (ONON) - On Holding also holds a Zacks Rank of 1, focusing on ultralight footwear and sports apparel [15] - The expected revenue growth rate is 21.2% and earnings growth rate is 79.8% for the next year [16] - The short-term average price target suggests a 45.3% increase from the last closing price of $41.78 [16] Ralph Lauren Corp. (RL) - Ralph Lauren has a Zacks Rank of 2 and has outperformed the industry due to its strategic "Next Great Chapter: Accelerate Plan" [17] - The company is investing in digital transformation, with expected revenue growth of 9.5% and earnings growth of 25% for the current year [20] - The short-term average price target indicates a 3.3% increase from the last closing price of $364.50 [20] Kontoor Brands Inc. (KTB) - Kontoor Brands, with a Zacks Rank of 2, operates lifestyle apparel brands like Wrangler and Lee [22] - The expected revenue growth rate is 11.3% and earnings growth rate is 5.3% for the next year [23] - The short-term average price target suggests a 31% increase from the last closing price of $73.69 [23] Boot Barn Holdings Inc. (BOOT) - Boot Barn Holdings has a Zacks Rank of 2 and focuses on western and work-related footwear and apparel [24] - The expected revenue growth rate is 16.2% and earnings growth rate is 20.5% for the current year [25] - The short-term average price target indicates a 15% increase from the last closing price of $195.76 [25]

Core Insights - The article draws a parallel between certain stocks and snakes, highlighting that some stocks may appear risky but are actually safe investments, akin to king snakes mimicking coral snakes [1][3]. Stock Analysis - **CRISPR Therapeutics AG (NASDAQ:CRSP)**: The stock has decreased by 21% this quarter and 23% from its annual high of $78.48. However, it has maintained its prior low of around $51 and its 200-day moving average, indicating potential support. The stock only fell 0.7% post-earnings after a narrower-than-expected loss, and its experimental cholesterol treatment shows promise. The 14-day Relative Strength Index (RSI) is at 30, suggesting it may be a good buying opportunity [5]. - **Crocs Inc (NASDAQ:CROX)**: The stock held its prior low of $73, and despite current unattractiveness, there are optimistic signs following earnings with a top-line beat and price-target hikes. Options are affordably priced, making it a potential buy for investors looking for value [7]. - **Palantir Technologies Inc (NASDAQ:PLTR)**: The stock is currently facing challenges, with a middling RSI and support at the 100-day moving average. There are concerns about a potential double top formation, and it is viewed as a target due to AI valuation concerns [9]. - **AppLovin Corp (NASDAQ:APP)**: The stock briefly breached its prior lows at $545 but quickly recovered, indicating chart support. While it is not considered oversold, the 80-day trendline is providing assistance, and $500 was a significant peak earlier in the year [11]. Volatility Insights - All four stocks mentioned have implied volatilities at modest-to-low levels, which is advantageous for options traders looking for stocks experiencing a post-earnings volatility crush [13]. Value Trap Consideration - The article also mentions the concept of value traps, referring to stocks that have performed well but may not have reached their lowest point yet, indicating potential risks for investors [14].

Core Insights - Crocs has appointed Rupert Campbell as executive vice-president and president of its Heydude brand, effective immediately [1] - Campbell previously served as senior vice-president and chief commercial officer for Heydude, and he will now oversee product, marketing, and commercial functions [1][2] - Crocs CEO Andrew Rees expressed confidence in Campbell's ability to drive long-term growth for the Heydude brand [2] Leadership Background - Rupert Campbell has a decade of experience at adidas, including as North American president, overseeing a market with over $6 billion in revenue and more than 10,000 employees [3] - His earlier career included leadership roles across Europe and Russia [3] Financial Performance - In Q3 2025, Crocs reported consolidated revenue of $996 million, a decrease of 6.2% from $1.06 billion in the same quarter the previous year [4] - Operating income fell 23% to $208 million from $270 million, resulting in an operating margin reduction to 20.8% from 25.4% [4] - Net income decreased to $145.8 million compared to $200 million in the same quarter of the previous year [5] Company Overview - Crocs operates the Crocs and HEYDUDE brands, selling products in over 80 countries through wholesale and direct-to-consumer channels [5]

Core Insights - Crocs, Inc. is focusing on innovation to regain momentum in a challenging demand environment, emphasizing product expansion and partnerships to enhance consumer excitement and brand relevance [2][3][5] Financial Performance - The third-quarter fiscal 2025 results exceeded expectations but did not meet the company's internal benchmarks, prompting a renewed focus on product innovation and brand management [3] - The Zacks Consensus Estimate for fiscal 2025 earnings indicates a year-over-year decline of 7.9%, while fiscal 2026 shows a projected growth of 3.9% [11] Product Strategy - Crocs is expanding its product lines, including new Clog franchises like the Crafted Clog and the Echo franchise, which includes successful products like Echo RO and Echo 2.0 [3][9] - The sandals segment outperformed the overall portfolio, gaining market share with strong demand for products like Brooklyn, Gataway, and Miami [4][9] Marketing and Engagement - Collaborations with influencers, such as the Cozzzy "Unfurgettable" line with Millie Bobby Brown, have driven significant social media engagement and product growth [4][9] - The company is leveraging digital strategies, particularly on platforms like TikTok, to enhance global engagement and support long-term growth [5] Valuation Metrics - Crocs shares have declined by 33% year-to-date, compared to an 18.9% decline in the industry, with a Zacks Rank of 1 (Strong Buy) [6] - The forward price-to-earnings ratio for Crocs is 5.85X, significantly lower than the industry average of 15.79X, indicating potential undervaluation [7]

Core Insights - Crocs has appointed Rupert Campbell as president of its struggling Heydude brand, effective immediately, as part of a strategic move to revitalize the brand's performance [5] - Heydude experienced a significant decline in Q3 sales, dropping nearly 22% year over year to $160 million, with wholesale revenue falling more than 38% [2] - The adjusted gross margin for Heydude decreased by 560 basis points to 42.3%, influenced by tariff challenges and fixed costs, although this was somewhat mitigated by an increase in average selling price [2] Company Performance - The decline in Heydude's sales is attributed to a strategic decision to eliminate underperforming wholesale partnerships, which may present a longer-term opportunity for recovery [3] - Despite the challenges, the recent sales report exceeded expectations, indicating that the situation may not be as dire as it appears [3] - Campbell's previous experience at Adidas, where he managed a market generating over $6 billion in revenue, is seen as a positive factor for his new role at Heydude [4] Leadership Changes - Rupert Campbell has been with Crocs since March, previously serving as senior vice president and chief commercial officer, where he was responsible for the brand's global commercial strategy [5] - Andrew Rees, CEO of Crocs, has expressed confidence in Campbell's ability to drive the marketing and commercial strategy for Heydude [4]

Core Viewpoint - Crocs, Inc. has promoted Rupert Campbell to Executive Vice President and President of the HEYDUDE brand, effective immediately, as part of its strategy to drive long-term global growth for the brand [1][2]. Company Overview - Crocs, Inc. is a leader in innovative casual footwear, combining comfort and style, with products sold in over 80 countries through various channels [3]. Leadership Changes - Rupert Campbell joined Crocs in March 2025 as Senior Vice President and Chief Commercial Officer for HEYDUDE, where he was responsible for the global commercial strategy [1]. - Prior to Crocs, Campbell was President of adidas North America, managing over $6 billion in revenue and a team of more than 10,000 [2]. Strategic Vision - Andrew Rees, CEO of Crocs, expressed confidence in Campbell's ability to guide HEYDUDE towards scalable global growth, highlighting his consumer-first mindset and operational excellence [2]. - Campbell aims to deepen the connection with consumers and turn strategic plans into reality through collaboration and creativity [2].

Core Viewpoint - No Street GP LP has fully exited its position in Crocs, indicating a lack of confidence in the company's future performance as reflected in its recent financial results and guidance [1][2][6]. Company Overview - Crocs, Inc. is a global leader in casual footwear, operating in over 85 countries with a focus on product innovation, direct-to-consumer expansion, and operational efficiency [5]. - The company's market capitalization is $3.9 billion, with a revenue of $4.1 billion and a net income of $182.5 million for the trailing twelve months (TTM) [4]. Recent Performance - In the third quarter, Crocs reported a revenue decline of 6.2% to $996 million, with HEYDUDE brand sales dropping significantly by 21.6% [7]. - The gross margin decreased by 110 basis points, and adjusted earnings per share fell by 18.9% to $2.92 [7]. - Management has provided disappointing guidance, expecting a further revenue decline of about 8% in the fourth quarter, primarily due to a mid-20% drop in HEYDUDE sales [7]. Investment Implications - The decision by No Street GP to liquidate its entire position in Crocs suggests that the risk-reward profile no longer aligns favorably for investors, especially given the fund's focus on high-growth companies [6]. - Despite Crocs' brand strength and cash generation capabilities, the current growth stagnation and negative near-term guidance indicate potential volatility ahead [9].