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GIII vs. GIL: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Textile - Apparel sector might want to consider either G-III Apparel Group (GIII - Free Report) or Gildan Activewear (GIL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
G-III Apparel Group has a Zacks Rank of #2 (Buy), while Gildan Activewear has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GIII is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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 7.80, while GIL has a forward P/E of 9.96. We also note that GIII has a PEG ratio of 0.52. 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 1.11.
Another notable valuation metric for GIII is its P/B ratio of 0.67. 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, GIL has a P/B of 2.85.
These are just a few of the metrics contributing to GIII's Value grade of A and GIL's Value grade of C.
GIII stands above GIL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GIII is the superior value option right now.
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GIII vs. GIL: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Textile - Apparel sector might want to consider either G-III Apparel Group (GIII - Free Report) or Gildan Activewear (GIL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
G-III Apparel Group has a Zacks Rank of #2 (Buy), while Gildan Activewear has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GIII is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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 7.80, while GIL has a forward P/E of 9.96. We also note that GIII has a PEG ratio of 0.52. 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 1.11.
Another notable valuation metric for GIII is its P/B ratio of 0.67. 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, GIL has a P/B of 2.85.
These are just a few of the metrics contributing to GIII's Value grade of A and GIL's Value grade of C.
GIII stands above GIL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GIII is the superior value option right now.