Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
G-III Apparel (GIII) could be a great choice for investors looking to buy stocks that have gained strong momentum recently but are still trading at reasonable prices. It is one of the several stocks that made it through our 'Fast-Paced Momentum at a Bargain' screen.
Companies in the Zacks Textile - Apparel industry, including RL, CROX, COLM and GIII, are gaining from favorable industry trends and brand-enhancing initiatives.
G-III Apparel Group reported strong owned-brand growth and margin expansion, but overall sales declined due to PVH license expirations. I maintain a Hold rating on GIII, as the stock trades at nearly 16x FY27 guided earnings, with potential for a higher effective multiple in FY28. The Marc Jacobs acquisition offers long-term potential but is expected to be near-term dilutive and will reduce GIII's net cash balance, increasing leverage.