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GIII vs. GIL: Which Stock Should Value Investors Buy 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 offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
G-III Apparel Group and Gildan Activewear are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. Investors should feel comfortable knowing that GIII likely has seen a stronger improvement to its earnings outlook than GIL has recently. But this is just one factor that value investors are interested in.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GIII currently has a forward P/E ratio of 14.22, while GIL has a forward P/E of 23.36. We also note that GIII has a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GIL currently has a PEG ratio of 2.60.
Another notable valuation metric for GIII is its P/B ratio of 1.20. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, GIL has a P/B of 4.46.
These metrics, and several others, help GIII earn a Value grade of A, while GIL has been given a Value grade of C.
GIII has seen stronger estimate revision activity and sports more attractive valuation metrics than GIL, so it seems like value investors will conclude that GIII is the superior option right now.
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GIII vs. GIL: Which Stock Should Value Investors Buy Now?
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 offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
G-III Apparel Group and Gildan Activewear are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. Investors should feel comfortable knowing that GIII likely has seen a stronger improvement to its earnings outlook than GIL has recently. But this is just one factor that value investors are interested in.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GIII currently has a forward P/E ratio of 14.22, while GIL has a forward P/E of 23.36. We also note that GIII has a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GIL currently has a PEG ratio of 2.60.
Another notable valuation metric for GIII is its P/B ratio of 1.20. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, GIL has a P/B of 4.46.
These metrics, and several others, help GIII earn a Value grade of A, while GIL has been given a Value grade of C.
GIII has seen stronger estimate revision activity and sports more attractive valuation metrics than GIL, so it seems like value investors will conclude that GIII is the superior option right now.