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Is Duluth Holdings (DLTH) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Duluth Holdings (DLTH - Free Report) . DLTH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.73. This compares to its industry's average Forward P/E of 10.15. Over the past year, DLTH's Forward P/E has been as high as 21.93 and as low as 8.73, with a median of 14.91.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DLTH has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.62.

Finally, investors should note that DLTH has a P/CF ratio of 5.34. 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. DLTH's current P/CF looks attractive when compared to its industry's average P/CF of 15.01. Within the past 12 months, DLTH's P/CF has been as high as 10.32 and as low as 5.34, with a median of 7.57.

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.

Shares of GIII Apparel Group are currently trading at a forward earnings multiple of 4.30 and a PEG ratio of 0.48 compared to its industry's P/E and PEG ratios of 10.15 and 0.93, respectively.


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