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Should Value Investors Buy GIII Apparel Group (GIII) Stock?

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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.

One stock to keep an eye on is GIII Apparel Group (GIII - Free Report) . GIII is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.79. This compares to its industry's average Forward P/E of 11.09. Over the last 12 months, GIII's Forward P/E has been as high as 9.57 and as low as 3.83, with a median of 6.14.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GIII has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.57.

Another great Textile - Apparel stock you could consider is Oxford Industries (OXM - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Furthermore, Oxford Industries holds a P/B ratio of 3.03 and its industry's price-to-book ratio is 6.12. OXM's P/B has been as high as 3.71, as low as 2.53, with a median of 2.94 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that GIII Apparel Group and Oxford Industries are likely undervalued currently. And when considering the strength of its earnings outlook, GIII and OXM sticks out as one of the market's strongest value stocks.


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