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G-III Apparel Group (GIII) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
La-Z-Boy (LZB) delivered earnings and revenue surprises of -1.54% and -0.62%, respectively, for the quarter ended April 2019. Do the numbers hold clues to what lies ahead for the stock?

G-III Apparel Group (GIII) closed the most recent trading day at $29.24, moving +1% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, added 0.29%.

Prior to today's trading, shares of the clothing and accessories maker had lost 31.66% over the past month. This has lagged the Consumer Discretionary sector's loss of 3.98% and the S&P 500's loss of 3.66% in that time.

GIII will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.22, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $650.37 million, up 6.31% from the year-ago period.

GIII's full-year Zacks Consensus Estimates are calling for earnings of $3.28 per share and revenue of $3.28 billion. These results would represent year-over-year changes of +14.69% and +6.55%, respectively.

It is also important to note the recent changes to analyst estimates for GIII. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.45% lower within the past month. GIII currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, GIII is holding a Forward P/E ratio of 8.82. This valuation marks a discount compared to its industry's average Forward P/E of 15.53.

Also, we should mention that GIII has a PEG ratio of 0.59. 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 had an average PEG ratio of 1.44 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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