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Is GIII Apparel Group (GIII) Stock Undervalued Right Now?
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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is GIII Apparel Group (GIII - Free Report) . GIII is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.43 right now. For comparison, its industry sports an average P/E of 13.06. Over the past 52 weeks, GIII's Forward P/E has been as high as 9.23 and as low as 6.29, with a median of 7.70.
We also note that GIII holds a PEG ratio of 0.47. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GIII's PEG compares to its industry's average PEG of 1.15. Within the past year, GIII's PEG has been as high as 0.47 and as low as 0.42, with a median of 0.45.
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 0.39. This compares to its industry's average P/S of 0.68.
These are just a handful of the figures considered in GIII Apparel Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GIII is an impressive value stock right now.