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Are Investors Undervaluing GIII Apparel Group (GIII) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 GIII Apparel Group (GIII - Free Report) . GIII is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 5.72 right now. For comparison, its industry sports an average P/E of 11.27. Over the last 12 months, GIII's Forward P/E has been as high as 13.98 and as low as 4.77, with a median of 8.11.

Investors should also note that GIII holds a PEG ratio of 0.48. 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. GIII's PEG compares to its industry's average PEG of 1.05. Within the past year, GIII's PEG has been as high as 1.21 and as low as 0.45, with a median of 0.87.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GIII has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.6.

Finally, investors should note that GIII has a P/CF ratio of 5.39. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.12. Within the past 12 months, GIII's P/CF has been as high as 13.84 and as low as 4.49, with a median of 7.65.

Another great Textile - Apparel stock you could consider is PVH (PVH - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of PVH are currently trading at a forward earnings multiple of 7.45 and a PEG ratio of 1.22 compared to its industry's P/E and PEG ratios of 11.27 and 1.05, respectively.

PVH's price-to-earnings ratio has been as high as 17.44 and as low as 6.56, with a median of 11.21, while its PEG ratio has been as high as 1.45 and as low as 0.12, with a median of 0.29, all within the past year.

Furthermore, PVH holds a P/B ratio of 0.91 and its industry's price-to-book ratio is 6.20. PVH's P/B has been as high as 1.72, as low as 0.80, with a median of 1.47 over the past 12 months.

These are only a few of the key metrics included in GIII Apparel Group and PVH 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 PVH look like an impressive value stock at the moment.


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