The stock of shoemaker Crocs (CROX) closed 7% higher on Sept. 26 after the company launched a new advertising campaign featuring actress Sydney Sweeney.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The collaboration will see Sweeney promote Crocs’ HeyDude shoe brand. The goal of the advertising campaign with Sydney Sweeney is to introduce HeyDude shoes to younger consumers. Crocs says that Sweeney will appear in multiple video and print advertisements to help boost awareness of the brand.
Crocs is not the only brand that Sweeney is promoting. The actress made headlines earlier this year for a controversial campaign she appeared in for American Eagle Outfitters (AEO). The controversial ads promoted American Eagle denim and included the tagline “Sydney Sweeney has great genes,” with the word “genes” crossed out and replaced with “jeans.”
Brand Awareness
While many people praised the American Eagle advertisements, some people complained on social media that it supported eugenics and was racist. American Eagle denied the accusations and said the advertisement with Sweeney was simply a play on words.
Despite the controversy, or perhaps because of it, American Eagle’s stock rose 40%. Now, Crocs is apparently hoping that Sydney Sweeney can help boost its brands. Already, news of the ad campaign has sent CROX stock sharply higher. The shares, which are down 25% on the year, could use the boost.
Is CROX Stock a Buy?
The stock of Crocs has a consensus Moderate Buy rating among 11 Wall Street analysts. That rating is based on four Buy, six Hold, and one Sell recommendations issued in the last three months. The average CROX price target of $87.09 implies 6.56% upside from current levels.
