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Are Investors Undervaluing Guess (GES) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Guess (GES - Free Report) is a stock many investors are watching right now. GES is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.70 right now. For comparison, its industry sports an average P/E of 11.30. Over the past 52 weeks, GES's Forward P/E has been as high as 10.08 and as low as 4.81, with a median of 6.44.

Another notable valuation metric for GES is its P/B ratio of 2.10. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.01. Within the past 52 weeks, GES's P/B has been as high as 2.74 and as low as 1.71, with a median of 2.13.

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. GES has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.6.

If you're looking for another solid Textile - Apparel value stock, take a look at GIII Apparel Group (GIII - Free Report) . GIII is a # 1 (Strong Buy) stock with a Value score of A.

GIII Apparel Group is trading at a forward earnings multiple of 6.63 at the moment, with a PEG ratio of 0.44. This compares to its industry's average P/E of 11.30 and average PEG ratio of 1.09.


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