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Is GIII Apparel Group (GIII) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

GIII 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 holds a P/E ratio of 5.95, while its industry has an average P/E of 11.42. Over the past year, GIII's Forward P/E has been as high as 14.09 and as low as 5.90, with a median of 8.38.

Investors should also note that GIII holds a PEG ratio of 0.48. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GIII's PEG compares to its industry's average PEG of 0.62. Within the past year, GIII's PEG has been as high as 1.22 and as low as 0.45, with a median of 0.89.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.45. This compares to its industry's average P/S of 0.64.

Finally, we should also recognize that GIII has a P/CF ratio of 5.57. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. GIII's current P/CF looks attractive when compared to its industry's average P/CF of 17.55. Over the past year, GIII's P/CF has been as high as 13.84 and as low as 4.92, with a median of 8.24.

If you're looking for another solid Textile - Apparel value stock, take a look at Oxford Industries (OXM - Free Report) . OXM is a # 2 (Buy) stock with a Value score of A.

Furthermore, Oxford Industries holds a P/B ratio of 2.82 and its industry's price-to-book ratio is 6.33. OXM's P/B has been as high as 4.19, as low as 2.74, with a median of 3.28 over the past 12 months.

These are only a few of the key metrics included in GIII Apparel Group and Oxford Industries strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GIII and OXM look like an impressive value stock at the moment.


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

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