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Are Investors Undervaluing Delta Apparel (DLA) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Delta Apparel (DLA - Free Report) is a stock many investors are watching right now. DLA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.51, while its industry has an average P/E of 10.77. Over the past 52 weeks, DLA's Forward P/E has been as high as 15.86 and as low as 7.45, with a median of 9.33.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DLA has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.72.
Finally, our model also underscores that DLA has a P/CF ratio of 5.89. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.46. Over the past 52 weeks, DLA's P/CF has been as high as 41.95 and as low as 5.05, with a median of 6.09.
Another great Textile - Apparel stock you could consider is GIII Apparel Group (GIII - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
GIII Apparel Group is trading at a forward earnings multiple of 6.81 at the moment, with a PEG ratio of 0.48. This compares to its industry's average P/E of 10.77 and average PEG ratio of 0.59.
GIII's price-to-earnings ratio has been as high as 14.09 and as low as 5.90, with a median of 8.56, while its PEG ratio has been as high as 1.22 and as low as 0.45, with a median of 0.90, all within the past year.
Furthermore, GIII Apparel Group holds a P/B ratio of 0.94 and its industry's price-to-book ratio is 7.36. GIII's P/B has been as high as 1.24, as low as 0.73, with a median of 1 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Delta Apparel and GIII Apparel Group are likely undervalued currently. And when considering the strength of its earnings outlook, DLA and GIII sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Delta Apparel (DLA) Right Now?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Delta Apparel (DLA - Free Report) is a stock many investors are watching right now. DLA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.51, while its industry has an average P/E of 10.77. Over the past 52 weeks, DLA's Forward P/E has been as high as 15.86 and as low as 7.45, with a median of 9.33.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DLA has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.72.
Finally, our model also underscores that DLA has a P/CF ratio of 5.89. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.46. Over the past 52 weeks, DLA's P/CF has been as high as 41.95 and as low as 5.05, with a median of 6.09.
Another great Textile - Apparel stock you could consider is GIII Apparel Group (GIII - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
GIII Apparel Group is trading at a forward earnings multiple of 6.81 at the moment, with a PEG ratio of 0.48. This compares to its industry's average P/E of 10.77 and average PEG ratio of 0.59.
GIII's price-to-earnings ratio has been as high as 14.09 and as low as 5.90, with a median of 8.56, while its PEG ratio has been as high as 1.22 and as low as 0.45, with a median of 0.90, all within the past year.
Furthermore, GIII Apparel Group holds a P/B ratio of 0.94 and its industry's price-to-book ratio is 7.36. GIII's P/B has been as high as 1.24, as low as 0.73, with a median of 1 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Delta Apparel and GIII Apparel Group are likely undervalued currently. And when considering the strength of its earnings outlook, DLA and GIII sticks out as one of the market's strongest value stocks.