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Bear of the Day: GIII Apparel (GIII)

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When the market ripped higher from the October lows to the 200-day moving average, investors cheered. It had that feeling again where everything was going one way, up. Over the last few trading days, sellers have had the upper hand, and it is making for some ugly downside action in some individual names.

Don’t get caught holding the bag in a stock made of straw. The real winners of the long-term in the stock market are companies with the strongest earnings trends. Those weak hands get shaken out real quick in stocks that are struggling to deliver these earnings.

The Zacks Rank helps warn investors of weakening earnings trends. Stocks like today’s Bear of the Day GIII Apparel Group (GIII - Free Report) . G-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates through two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage.

A big earnings miss here caused some bad fallout. Last quarter’s report came in 50-cents shy of expectations. It was the second miss in a row, prompting analysts to cut their numbers for both the current year and next year. That dropped the Zacks Consensus Estimates for the current year from $4.31 to $3.30 while next year’s is off from $4.89 to $3.63.

The Textile – Apparel industry is in the Bottom 31% of our Zacks Industry Rank. There are a few stocks within that industry which are still in the good graces of our Zacks Rank. These include Zacks Rank #2 (Buy) Crocs (CROX - Free Report) and lululemon athletica (LULU - Free Report) .


In-Depth Zacks Research for the Tickers Above


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lululemon athletica inc. (LULU) - free report >>

Crocs, Inc. (CROX) - free report >>

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

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