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GIII vs. COLM: Which Stock Is the Better Value Option?
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Investors with an interest in Textile - Apparel stocks have likely encountered both G-III Apparel Group (GIII - Free Report) and Columbia Sportswear (COLM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
G-III Apparel Group has a Zacks Rank of #2 (Buy), while Columbia Sportswear has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that GIII likely has seen a stronger improvement to its earnings outlook than COLM has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GIII currently has a forward P/E ratio of 5.15, while COLM has a forward P/E of 14.31. We also note that GIII has a PEG ratio of 0.34. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. COLM currently has a PEG ratio of 1.69.
Another notable valuation metric for GIII is its P/B ratio of 0.57. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, COLM has a P/B of 2.56.
Based on these metrics and many more, GIII holds a Value grade of A, while COLM has a Value grade of C.
GIII has seen stronger estimate revision activity and sports more attractive valuation metrics than COLM, so it seems like value investors will conclude that GIII is the superior option right now.
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GIII vs. COLM: Which Stock Is the Better Value Option?
Investors with an interest in Textile - Apparel stocks have likely encountered both G-III Apparel Group (GIII - Free Report) and Columbia Sportswear (COLM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
G-III Apparel Group has a Zacks Rank of #2 (Buy), while Columbia Sportswear has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that GIII likely has seen a stronger improvement to its earnings outlook than COLM has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GIII currently has a forward P/E ratio of 5.15, while COLM has a forward P/E of 14.31. We also note that GIII has a PEG ratio of 0.34. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. COLM currently has a PEG ratio of 1.69.
Another notable valuation metric for GIII is its P/B ratio of 0.57. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, COLM has a P/B of 2.56.
Based on these metrics and many more, GIII holds a Value grade of A, while COLM has a Value grade of C.
GIII has seen stronger estimate revision activity and sports more attractive valuation metrics than COLM, so it seems like value investors will conclude that GIII is the superior option right now.