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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is GIII Apparel Group (GIII - Free Report) . GIII is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.75, while its industry has an average P/E of 12.53. Over the past 52 weeks, GIII's Forward P/E has been as high as 9.23 and as low as 6.53, with a median of 7.71.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.43. This compares to its industry's average P/S of 0.64.

These figures are just a handful of the metrics value investors tend to look at, but they help show that GIII Apparel Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GIII feels like a great value stock at the moment.


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