Guess (GES) Gains As Market Dips: What You Should Know

Guess (GES) closed at $20.41 in the latest trading session, marking a +0.15% move from the prior day. This move outpaced the S&P 500's daily loss of 3.09%. At the same time, the Dow lost 2.41%, and the tech-heavy Nasdaq lost 4.43%.

Prior to today's trading, shares of the clothing company had lost 9.06% over the past month. This has lagged the Consumer Discretionary sector's loss of 7.49% and the S&P 500's loss of 6.27% in that time.

Investors will be hoping for strength from GES as it approaches its next earnings release, which is expected to be November 20, 2018. In that report, analysts expect GES to post earnings of $0.16 per share. This would mark year-over-year growth of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $602.71 million, up 8.76% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.04 per share and revenue of $2.57 billion. These totals would mark changes of +48.57% and +8.2%, respectively, from last year.

Any recent changes to analyst estimates for GES should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. GES is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, GES is currently trading at a Forward P/E ratio of 19.66. For comparison, its industry has an average Forward P/E of 18.05, which means GES is trading at a premium to the group.

Also, we should mention that GES has a PEG ratio of 1.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Textile - Apparel industry currently had an average PEG ratio of 1.75 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow GES in the coming trading sessions, be sure to utilize

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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