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Is Hugo Boss (BOSSY) Stock Undervalued Right Now?

·3 min read

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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Hugo Boss (BOSSY). BOSSY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another valuation metric that we should highlight is BOSSY's P/B ratio of 3.66. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.10. Over the past year, BOSSY's P/B has been as high as 4.73 and as low as 2.91, with a median of 3.96.

Finally, we should also recognize that BOSSY has a P/CF ratio of 7.45. 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. BOSSY's current P/CF looks attractive when compared to its industry's average P/CF of 15.56. Over the past 52 weeks, BOSSY's P/CF has been as high as 11.88 and as low as 5.60, with a median of 7.66.

Another great Textile - Apparel stock you could consider is GIII Apparel Group (GIII), which is a # 1 (Strong Buy) stock with a Value Score of A.

Shares of GIII Apparel Group currently holds a Forward P/E ratio of 4.74, and its PEG ratio is 0.48. In comparison, its industry sports average P/E and PEG ratios of 10.76 and 1.13.

GIII's Forward P/E has been as high as 11.20 and as low as 4.30, with a median of 7.33. During the same time period, its PEG ratio has been as high as 1.12, as low as 0.45, with a median of 0.50.

GIII Apparel Group sports a P/B ratio of 0.67 as well; this compares to its industry's price-to-book ratio of 6.10. In the past 52 weeks, GIII's P/B has been as high as 1.15, as low as 0.61, with a median of 0.90.

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


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