Should Value Investors Buy GIII Apparel Group (GIII) Stock?

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 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 to watch right now is GIII Apparel Group (GIII). GIII is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.14. This compares to its industry's average Forward P/E of 15.76. Over the past 52 weeks, GIII's Forward P/E has been as high as 9.51 and as low as 5.04, with a median of 7.37.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GIII has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.71.

These are only a few of the key metrics included in GIII Apparel Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GIII looks like an impressive value stock at the moment.

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This article originally published on Zacks Investment Research (zacks.com).

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