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GES vs. GIL: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Textile - Apparel sector might want to consider either Guess (GES - Free Report) or Gildan Activewear (GIL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Guess has a Zacks Rank of #1 (Strong Buy), while Gildan Activewear has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GES has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GES currently has a forward P/E ratio of 13.38, while GIL has a forward P/E of 18.67. We also note that GES has a PEG ratio of 0.76. 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. GIL currently has a PEG ratio of 1.31.
Another notable valuation metric for GES is its P/B ratio of 2.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GIL has a P/B of 4.
These are just a few of the metrics contributing to GES's Value grade of A and GIL's Value grade of C.
GES stands above GIL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GES is the superior value option right now.
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GES vs. GIL: Which Stock Is the Better Value Option?
Investors looking for stocks in the Textile - Apparel sector might want to consider either Guess (GES - Free Report) or Gildan Activewear (GIL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Guess has a Zacks Rank of #1 (Strong Buy), while Gildan Activewear has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GES has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GES currently has a forward P/E ratio of 13.38, while GIL has a forward P/E of 18.67. We also note that GES has a PEG ratio of 0.76. 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. GIL currently has a PEG ratio of 1.31.
Another notable valuation metric for GES is its P/B ratio of 2.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GIL has a P/B of 4.
These are just a few of the metrics contributing to GES's Value grade of A and GIL's Value grade of C.
GES stands above GIL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GES is the superior value option right now.