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

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·3 min read
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

G-III Apparel Group (GIII) is a stock many investors are watching right now. GIII is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.17, which compares to its industry's average of 22.33. GIII's Forward P/E has been as high as 48.92 and as low as 7.36, with a median of 11.84, all within the past year.

Investors should also note that GIII holds a PEG ratio of 1.14. 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. GIII's industry currently sports an average PEG of 1.16. Within the past year, GIII's PEG has been as high as 12.59 and as low as 0.65, with a median of 1.15.

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 0.8. This compares to its industry's average P/S of 1.

Finally, we should also recognize that GIII has a P/CF ratio of 25.92. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. GIII's P/CF compares to its industry's average P/CF of 53.81. GIII's P/CF has been as high as 27.44 and as low as 3.02, with a median of 14.30, all within the past year.

These are just a handful of the figures considered in G-III Apparel Group'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 GIII is an impressive value stock right now.


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