Back to top

Image: Bigstock

Are Investors Undervaluing G-III Apparel Group (GIII) Right Now?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

G-III Apparel Group (GIII - Free Report) is a stock many investors are watching right now. GIII is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.39. This compares to its industry's average Forward P/E of 19.76. Over the past 52 weeks, GIII's Forward P/E has been as high as 48.92 and as low as 7.86, with a median of 11.55.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GIII has a P/S ratio of 0.68. This compares to its industry's average P/S of 0.97.

These are only a few of the key metrics included in G-III Apparel Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GIII looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


G-III Apparel Group, LTD. (GIII) - free report >>

Published in