We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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) and an A for Value. The stock is trading with P/E ratio of 6.93 right now. For comparison, its industry sports an average P/E of 11.20. GES's Forward P/E has been as high as 10.08 and as low as 4.81, with a median of 6.68, all within the past year.
Another valuation metric that we should highlight is GES's P/B ratio of 2.17. 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. This company's current P/B looks solid when compared to its industry's average P/B of 6.26. 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 2.12.
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 0.42. This compares to its industry's average P/S of 0.49.
Finally, investors will want to recognize that GES has a P/CF ratio of 7.24. 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. GES's P/CF compares to its industry's average P/CF of 19.72. GES's P/CF has been as high as 8.28 and as low as 4.89, with a median of 6.35, all within the past year.
GIII Apparel Group (GIII - Free Report) may be another strong Textile - Apparel stock to add to your shortlist. GIII is a # 1 (Strong Buy) stock with a Value grade of A.
GIII Apparel Group is currently trading with a Forward P/E ratio of 7.17 while its PEG ratio sits at 0.47. Both of the company's metrics compare favorably to its industry's average P/E of 11.20 and average PEG ratio of 1.06.
Over the last 12 months, GIII's P/E has been as high as 8.20, as low as 3.01, with a median of 5.42, and its PEG ratio has been as high as 0.52, as low as 0.20, with a median of 0.33.
Additionally, GIII Apparel Group has a P/B ratio of 0.80 while its industry's price-to-book ratio sits at 6.26. For GIII, this valuation metric has been as high as 0.84, as low as 0.35, with a median of 0.56 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Guess and GIII Apparel Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GES and GIII feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Guess (GES) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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) and an A for Value. The stock is trading with P/E ratio of 6.93 right now. For comparison, its industry sports an average P/E of 11.20. GES's Forward P/E has been as high as 10.08 and as low as 4.81, with a median of 6.68, all within the past year.
Another valuation metric that we should highlight is GES's P/B ratio of 2.17. 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. This company's current P/B looks solid when compared to its industry's average P/B of 6.26. 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 2.12.
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 0.42. This compares to its industry's average P/S of 0.49.
Finally, investors will want to recognize that GES has a P/CF ratio of 7.24. 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. GES's P/CF compares to its industry's average P/CF of 19.72. GES's P/CF has been as high as 8.28 and as low as 4.89, with a median of 6.35, all within the past year.
GIII Apparel Group (GIII - Free Report) may be another strong Textile - Apparel stock to add to your shortlist. GIII is a # 1 (Strong Buy) stock with a Value grade of A.
GIII Apparel Group is currently trading with a Forward P/E ratio of 7.17 while its PEG ratio sits at 0.47. Both of the company's metrics compare favorably to its industry's average P/E of 11.20 and average PEG ratio of 1.06.
Over the last 12 months, GIII's P/E has been as high as 8.20, as low as 3.01, with a median of 5.42, and its PEG ratio has been as high as 0.52, as low as 0.20, with a median of 0.33.
Additionally, GIII Apparel Group has a P/B ratio of 0.80 while its industry's price-to-book ratio sits at 6.26. For GIII, this valuation metric has been as high as 0.84, as low as 0.35, with a median of 0.56 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Guess and GIII Apparel Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GES and GIII feels like a great value stock at the moment.