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One shoemaker stock up 143% this year is still a buy, according to trader

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One shoemaker stock up 137% this year is still a buy, according to trader
One shoemaker stock up 137% this year is still a buy, according to trader

Shoemaker Crocs has been a surprise winner this year, and Inside Edge Capital Management founder Todd Gordon still sees the runaway stock as a buy after a tremendous rally.

Shares of the Colorado-based company have rallied 143% in 2021, most recently benefiting from a solid quarterly report this week.

"They just reported earnings, had a monster quarter here," Gordon told CNBC's "Trading Nation" on Thursday. "It's been a major turnaround story."

Crocs on Thursday beat third-quarter earnings and sales estimates while raising its full-year guidance. The company has dramatically improved profitability in recent years. It is expected to earn $7.38 a share this year, up from $1.61 in fiscal 2019.

"If we look at the chart here you can see that they obviously had a big move up post-2009, kind of a dead period in the company here," Gordon said, reviewing its stock performance. "This is when that turnaround began and then a nice move up, there's the Covid sell-off, and then we accelerated here nicely."

Shares have surged 900% in the past 10 years. But, after hitting a record high in September, the stock has eased back — it is down 7% from that peak.

"I think this is a nice buying opportunity. So, while support generally in the $142 to $145 area is in play, I think you can buy this if you want to add it to your portfolio," said Gordon.

Crocs last traded at $152 a share.

Gordon laid out all his reasons to be bullish on Crocs in a segment for "Trading Nation." Check out the video here.

Disclosure: Inside Edge Capital Management holds shares in Crocs.