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G-III Apparel Group (GIII) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, G-III Apparel Group (GIII - Free Report) closed at $25.32, marking a -0.9% move from the previous day. This change lagged the S&P 500's daily gain of 1.05%. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq gained 1.64%.

Prior to today's trading, shares of the clothing and accessories maker had gained 4.58% over the past month. This has outpaced the Consumer Discretionary sector's loss of 2.92% and the S&P 500's loss of 2.21% in that time.

The upcoming earnings release of G-III Apparel Group will be of great interest to investors. The company's upcoming EPS is projected at $0.02, signifying a 98.52% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.13 billion, up 4.85% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.27 per share and revenue of $3.3 billion. These totals would mark changes of +14.74% and +2.35%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for G-III Apparel Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. G-III Apparel Group is currently a Zacks Rank #1 (Strong Buy).

Looking at valuation, G-III Apparel Group is presently trading at a Forward P/E ratio of 7.83. Its industry sports an average Forward P/E of 12.92, so one might conclude that G-III Apparel Group is trading at a discount comparatively.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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