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G-III Apparel Group (GIII) Flat As Market Sinks: What You Should Know

Zacks Equity Research

G-III Apparel Group (GIII) closed the most recent trading day at $38.85, making no change from the previous trading session. This change was narrower than the S&P 500's 0.16% loss on the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 0.26%.

Heading into today, shares of the clothing and accessories maker had lost 4.19% over the past month, lagging the Consumer Discretionary sector's gain of 2.22% and the S&P 500's loss of 0.19% in that time.

Investors will be hoping for strength from GIII as it approaches its next earnings release. On that day, GIII is projected to report earnings of $0.21 per share, which would represent a year-over-year decline of 4.55%. Meanwhile, our latest consensus estimate is calling for revenue of $650.62 million, up 6.36% from the prior-year quarter.

GIII's full-year Zacks Consensus Estimates are calling for earnings of $3.30 per share and revenue of $3.28 billion. These results would represent year-over-year changes of +15.38% and +6.65%, respectively.

Investors should also note any recent changes to analyst estimates for GIII. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. GIII is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, GIII is holding a Forward P/E ratio of 11.78. For comparison, its industry has an average Forward P/E of 16.89, which means GIII is trading at a discount to the group.

Investors should also note that GIII has a PEG ratio of 0.79 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. GIII's industry had an average PEG ratio of 1.47 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 79, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow GIII in the coming trading sessions, be sure to utilize Zacks.com.


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