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Is G-III Apparel Group (GIII) a Great Value Stock Right Now?

Zacks Equity Research

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 G-III Apparel Group (GIII). 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 11.45 right now. For comparison, its industry sports an average P/E of 20. GIII's Forward P/E has been as high as 22.68 and as low as 8.55, with a median of 13.82, all within the past year.

We also note that GIII holds a PEG ratio of 0.76. 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 industry has an average PEG of 1.39 right now. Within the past year, GIII's PEG has been as high as 1.51 and as low as 0.56, with a median of 0.92.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GIII has a P/S ratio of 0.62. This compares to its industry's average P/S of 0.86.

Finally, investors will want to recognize that GIII has a P/CF ratio of 11. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 30.91. Over the past year, GIII's P/CF has been as high as 20.53 and as low as 8.56, with a median of 13.59.

These figures are just a handful of the metrics value investors tend to look at, but they help show that G-III Apparel Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GIII feels like a great value stock at the moment.


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