Crocs Shares Have Surged Nearly 2,000% Over the Last Five years

One of the stock market’s best-kept secrets makes rubber-like shoes.

Shares of Crocs Inc. have soared nearly 130% so far this year, bringing its five-year rally to over 1,900% and dominating the S&P 400 consumer discretionary sector’s 85% gain over that span. By comparison, Tesla Inc. -- best known for its seemingly rocket-fueled gains, as well as its vocal chief executive -- has soared about 2,100% in that period.

While supply chain snarls and labor shortages have weighed down peers throughout the pandemic, Crocs has managed to navigate the choke points, with sales skyrocketing. The footwear retailer said in September that it expects revenue to climb to more than $5 billion by 2026. While the stock has posted dazzling gains already, the company’s chief executive officer sees more to come.

“There’s a good amount priced in, but there’s also a ton of opportunity,” Crocs Chief Executive Officer Andrew Rees said on Bloomberg’s “QuickTake Stock” streaming program. “Our stock has risen with the fundamental improvements in our business. We’ve grown the top line. We’ve grown margins. We have best in class margins in the footwear sector, both at the gross margin level and the operating margin level; we generate a ton of cash flow.”

Of the 10 analysts covering Crocs tracked by Bloomberg, seven give the stock a buy rating, while three recommend holding.