We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GIII vs. LULU: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in stocks from the Textile - Apparel sector have probably already heard of G-III Apparel Group (GIII - Free Report) and Lululemon (LULU - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
G-III Apparel Group has a Zacks Rank of #2 (Buy), while Lululemon has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that GIII likely has seen a stronger improvement to its earnings outlook than LULU has recently. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GIII currently has a forward P/E ratio of 7.12, while LULU has a forward P/E of 32.37. We also note that GIII has a PEG ratio of 0.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LULU currently has a PEG ratio of 1.77.
Another notable valuation metric for GIII is its P/B ratio of 0.87. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LULU has a P/B of 14.36.
These metrics, and several others, help GIII earn a Value grade of B, while LULU has been given a Value grade of D.
GIII has seen stronger estimate revision activity and sports more attractive valuation metrics than LULU, so it seems like value investors will conclude that GIII is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
GIII vs. LULU: Which Stock Is the Better Value Option?
Investors interested in stocks from the Textile - Apparel sector have probably already heard of G-III Apparel Group (GIII - Free Report) and Lululemon (LULU - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
G-III Apparel Group has a Zacks Rank of #2 (Buy), while Lululemon has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that GIII likely has seen a stronger improvement to its earnings outlook than LULU has recently. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GIII currently has a forward P/E ratio of 7.12, while LULU has a forward P/E of 32.37. We also note that GIII has a PEG ratio of 0.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LULU currently has a PEG ratio of 1.77.
Another notable valuation metric for GIII is its P/B ratio of 0.87. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LULU has a P/B of 14.36.
These metrics, and several others, help GIII earn a Value grade of B, while LULU has been given a Value grade of D.
GIII has seen stronger estimate revision activity and sports more attractive valuation metrics than LULU, so it seems like value investors will conclude that GIII is the superior option right now.