Is Guess (GES) a Great Value Stock Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Guess (GES). GES is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 16.78, while its industry has an average P/E of 21.94. Over the past 52 weeks, GES's Forward P/E has been as high as 1,496.59 and as low as -1,034.13, with a median of 12.24.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GES has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.76.
These are only a few of the key metrics included in Guess'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, GES looks like an impressive value stock at the moment.
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