Crocs & 3 Other Consumer Discretionary Stocks to Buy in 2026

Core Insights - Crocs, Inc. has evolved from a functional niche brand to a culturally relevant lifestyle brand, focusing on sustainable and profitable growth through brand building, product innovation, and go-to-market strategies [1] Financial Performance - Crocs shares have increased by 11.3% over the past three months, outperforming the Zacks Textile - Apparel industry's decline of 0.5% and the broader Consumer Discretionary sector's decline of 7.8% [2] Product and Market Strategy - The company is experiencing growth in core categories such as clogs and sandals, as well as in personalization products like Jibbitz, with strong performance across digital and retail channels [3] - Crocs is refreshing its product lines with updated materials and comfort features while introducing new offerings in sandals, boots, and seasonal footwear [3] - Innovations like the Echo and In-Motion franchises are contributing to brand strength, allowing Crocs to maintain pricing discipline and protect margins [4] Direct-to-Consumer Growth - The direct-to-consumer (DTC) channel is a significant growth driver, with a balanced mix of DTC and wholesale channels enhancing brand engagement and distribution efficiency [5] - Investments in digital platforms and data analytics have improved inventory management and marketing effectiveness [5] Challenges and Brand Refresh - The HEYDUDE brand is currently facing challenges due to a cautious U.S. consumer and elevated tariffs, but product refreshes are underway to restore momentum [6] - The brand is undergoing a reset in North America, focusing on inventory management and performance marketing adjustments to enhance profitability [6] Earnings Estimates - Positive earnings estimate revisions have been noted, with the Zacks Consensus Estimate for Crocs' earnings per share (EPS) projected at $12.13 for the current year and $12.60 for the next year, reflecting growth of 5% and 8.6% respectively [9]