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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
GIII Apparel Group (GIII) is a stock many investors are watching right now. GIII is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.14. This compares to its industry's average Forward P/E of 15.83. Over the last 12 months, 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 frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.4. 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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G-III Apparel Group, LTD. (GIII): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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