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Is GIII Apparel Group (GIII) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is GIII Apparel Group (GIII - Free Report) . GIII is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.41 right now. For comparison, its industry sports an average P/E of 11.31. Over the past year, GIII's Forward P/E has been as high as 8.20 and as low as 3.01, with a median of 5.43.
Investors will also notice that GIII has a PEG ratio of 0.47. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GIII's PEG compares to its industry's average PEG of 1.07. Over the past 52 weeks, GIII's PEG has been as high as 0.52 and as low as 0.20, with a median of 0.33.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GIII has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.51.
Investors could also keep in mind Kontoor Brands (KTB - Free Report) , an Textile - Apparel stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Kontoor Brands currently holds a Forward P/E ratio of 8.50, and its PEG ratio is 1.06. In comparison, its industry sports average P/E and PEG ratios of 11.31 and 1.07.
KTB's price-to-earnings ratio has been as high as 11.64 and as low as 7.06, with a median of 8.95, while its PEG ratio has been as high as 1.46 and as low as 0.88, with a median of 1.12, all within the past year.
Kontoor Brands also has a P/B ratio of 7.62 compared to its industry's price-to-book ratio of 6.34. Over the past year, its P/B ratio has been as high as 11.94, as low as 6.46, with a median of 8.94.
These are only a few of the key metrics included in GIII Apparel Group and Kontoor Brands strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GIII and KTB look like an impressive value stock at the moment.
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Is GIII Apparel Group (GIII) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is GIII Apparel Group (GIII - Free Report) . GIII is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.41 right now. For comparison, its industry sports an average P/E of 11.31. Over the past year, GIII's Forward P/E has been as high as 8.20 and as low as 3.01, with a median of 5.43.
Investors will also notice that GIII has a PEG ratio of 0.47. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GIII's PEG compares to its industry's average PEG of 1.07. Over the past 52 weeks, GIII's PEG has been as high as 0.52 and as low as 0.20, with a median of 0.33.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GIII has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.51.
Investors could also keep in mind Kontoor Brands (KTB - Free Report) , an Textile - Apparel stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Kontoor Brands currently holds a Forward P/E ratio of 8.50, and its PEG ratio is 1.06. In comparison, its industry sports average P/E and PEG ratios of 11.31 and 1.07.
KTB's price-to-earnings ratio has been as high as 11.64 and as low as 7.06, with a median of 8.95, while its PEG ratio has been as high as 1.46 and as low as 0.88, with a median of 1.12, all within the past year.
Kontoor Brands also has a P/B ratio of 7.62 compared to its industry's price-to-book ratio of 6.34. Over the past year, its P/B ratio has been as high as 11.94, as low as 6.46, with a median of 8.94.
These are only a few of the key metrics included in GIII Apparel Group and Kontoor Brands strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GIII and KTB look like an impressive value stock at the moment.