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Is Guess (GES) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 18.90, while its industry has an average P/E of 19.02. Over the last 12 months, GES's Forward P/E has been as high as 26.48 and as low as 15.85, with a median of 20.38.

We also note that GES holds a PEG ratio of 1.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GES's industry has an average PEG of 1.40 right now. GES's PEG has been as high as 1.51 and as low as 0.91, with a median of 1.16, all within the past year.

Finally, investors should note that GES has a P/CF ratio of 28.31. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. GES's P/CF compares to its industry's average P/CF of 45.46. Over the past year, GES's P/CF has been as high as 36.09 and as low as 17.03, with a median of 23.82.

These are just a handful of the figures considered in Guess'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 is an impressive value stock right now.


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