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GIII or LULU: Which Is the Better Value Stock Right Now?

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Investors interested in Textile - Apparel stocks are likely familiar with G-III Apparel Group (GIII - Free Report) and Lululemon (LULU - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, G-III Apparel Group is sporting a Zacks Rank of #1 (Strong Buy), while Lululemon has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GIII has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 7.02, while LULU has a forward P/E of 31.85. We also note that GIII has a PEG ratio of 0.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LULU currently has a PEG ratio of 1.59.

Another notable valuation metric for GIII is its P/B ratio of 0.66. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, LULU has a P/B of 14.52.

These are just a few of the metrics contributing to GIII's Value grade of A and LULU's Value grade of D.

GIII sticks out from LULU in both our Zacks Rank and Style Scores models, so value investors will likely feel that GIII is the better option right now.


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lululemon athletica inc. (LULU) - free report >>

G-III Apparel Group, LTD. (GIII) - free report >>

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