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

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.14, which compares to its industry's average of 15.09. Over the past year, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GIII has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.62.

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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