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Should Value Investors Buy GIII Apparel Group (GIII) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is GIII Apparel Group (GIII - Free Report) . GIII is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.03. This compares to its industry's average Forward P/E of 11.94. Over the last 12 months, GIII's Forward P/E has been as high as 8.20 and as low as 3.01, with a median of 6.01.

Investors will also notice that GIII has a PEG ratio of 0.47. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GIII's PEG compares to its industry's average PEG of 1.13. Within the past year, GIII's PEG has been as high as 0.52 and as low as 0.20, with a median of 0.35.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. GIII has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.55.

Another great Textile - Apparel stock you could consider is PVH (PVH - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of PVH are currently trading at a forward earnings multiple of 6.79 and a PEG ratio of 0.51 compared to its industry's P/E and PEG ratios of 11.94 and 1.13, respectively.

Over the past year, PVH's P/E has been as high as 11.27, as low as 5.98, with a median of 8.11; its PEG ratio has been as high as 1.10, as low as 0.47, with a median of 0.35 during the same time period.

Furthermore, PVH holds a P/B ratio of 0.91 and its industry's price-to-book ratio is 6.50. PVH's P/B has been as high as 1.22, as low as 0.68, with a median of 1.01 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that GIII Apparel Group and PVH are likely undervalued currently. And when considering the strength of its earnings outlook, GIII and PVH sticks out as one of the market's strongest value stocks.


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