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Is Guess (GES) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 to watch right now is Guess (GES - Free Report) . GES is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 17.52. This compares to its industry's average Forward P/E of 18.84. Over the last 12 months, GES's Forward P/E has been as high as 25.11 and as low as 15.85, with a median of 20.08.

Investors should also note that GES holds a PEG ratio of 1. 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. GES's industry currently sports an average PEG of 1.39. Within the past year, GES's PEG has been as high as 1.43 and as low as 0.91, with a median of 1.15.

Finally, our model also underscores that GES has a P/CF ratio of 26.38. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 46.01. Within the past 12 months, GES's P/CF has been as high as 36.09 and as low as 17.18, with a median of 26.57.

These are just a handful of the figures considered in Guess'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 GES is an impressive value stock right now.


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