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Should Value Investors Buy Guess (GES) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One stock to keep an eye on is Guess (GES - Free Report) . GES is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.60, which compares to its industry's average of 11.83. Over the past year, GES's Forward P/E has been as high as 10.08 and as low as 4.81, with a median of 6.60.

We should also highlight that GES has a P/B ratio of 2.37. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. GES's current P/B looks attractive when compared to its industry's average P/B of 6.17. Over the past year, GES's P/B has been as high as 2.74 and as low as 1.71, with a median of 2.10.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.46. This compares to its industry's average P/S of 0.55.

Finally, investors should note that GES has a P/CF ratio of 7.90. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.99. Over the past 52 weeks, GES's P/CF has been as high as 8.28 and as low as 4.89, with a median of 6.19.

Investors could also keep in mind GIII Apparel Group (GIII - Free Report) , an Textile - Apparel stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Shares of GIII Apparel Group are currently trading at a forward earnings multiple of 8.05 and a PEG ratio of 0.47 compared to its industry's P/E and PEG ratios of 11.83 and 1.12, respectively.

GIII's price-to-earnings ratio has been as high as 8.05 and as low as 3.01, with a median of 5.21, while its PEG ratio has been as high as 0.52 and as low as 0.20, with a median of 0.33, all within the past year.

Furthermore, GIII Apparel Group holds a P/B ratio of 0.79 and its industry's price-to-book ratio is 6.17. GIII's P/B has been as high as 0.79, as low as 0.35, with a median of 0.55 over the past 12 months.

These are just a handful of the figures considered in Guess and GIII Apparel Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GES and GIII is an impressive value stock right now.


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