Is G-III Apparel Group (GIII) a Great Value Stock Right Now?

·2 min read

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is G-III Apparel Group (GIII). GIII is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 13.39, which compares to its industry's average of 24.11. GIII's Forward P/E has been as high as 48.92 and as low as 6.18, with a median of 11.27, all within the past year.

Investors will also notice that GIII has a PEG ratio of 1.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GIII's PEG compares to its industry's average PEG of 1.28. Within the past year, GIII's PEG has been as high as 12.59 and as low as 0.54, with a median of 1.14.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GIII has a P/S ratio of 0.74. This compares to its industry's average P/S of 0.98.

These figures are just a handful of the metrics value investors tend to look at, but they help show that G-III Apparel Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GIII feels like a great value stock at the moment.


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