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

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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), as well as a Value grade of A. The stock is trading with P/E ratio of 5.58 right now. For comparison, its industry sports an average P/E of 9.68. Over the past year, GIII's Forward P/E has been as high as 8.76 and as low as 5.33, with a median of 7.41.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.33. This compares to its industry's average P/S of 0.44.

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


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