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GIII or GIL: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Textile - Apparel sector have probably already heard of G-III Apparel Group (GIII - Free Report) and Gildan Activewear (GIL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, G-III Apparel Group is sporting a Zacks Rank of #1 (Strong Buy), while Gildan Activewear has a Zacks Rank of #3 (Hold). This means that GIII's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

GIII currently has a forward P/E ratio of 12.11, while GIL has a forward P/E of 17.99. We also note that GIII has a PEG ratio of 0.81. 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. GIL currently has a PEG ratio of 1.52.

Another notable valuation metric for GIII is its P/B ratio of 1.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, GIL has a P/B of 3.84.

These are just a few of the metrics contributing to GIII's Value grade of A and GIL's Value grade of C.

GIII is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GIII is likely the superior value option right now.


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G-III Apparel Group, LTD. (GIII) - free report >>

Gildan Activewear, Inc. (GIL) - free report >>

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