Why G-III Apparel Group (GIII) is a Top Momentum Stock for the Long-Term

Zacks
2024-12-20

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

G-III Apparel Group (GIII)

Based in New York, G-III Apparel Group, Ltd. is a manufacturer, designer and distributor of apparel and accessories under licensed brands, owned brands and private label brands. The company’s portfolio includes outerwear, dresses, sportswear, swimwear, women’s suits and women’s performance wear as well as women’s handbags, footwear, small leather goods, cold weather accessories and luggage. G-III Apparel stands as a distinguished global fashion entity, showcasing its prowess in design, sourcing and marketing. With ownership and licensing rights to more than 30 leading brands, the company boasts a diverse portfolio. Its uniqueness lies in the distinct brand identities, product ranges and consumer interactions it offers. G-III directly owns 10 renowned brands, including DKNY, Karl Lagerfeld, Donna Karan, G.H. Bass and Vilebrequin. Additionally, it holds licenses for more than 20 esteemed brands, including Calvin Klein, Tommy Hilfiger, Nautica, Halston, Champion and various National Sports leagues, among others.

GIII sits at a Zacks Rank #2 (Buy), holds a Momentum Style Score of B, and has a VGM Score of B. The stock is down 2.8% and up 15.2% over the past one-week and four-week period, respectively, and G-III Apparel Group has lost 0.1% in the last one-year period as well. Additionally, an average of 507,680.34 shares were traded over the last 20 trading sessions.

Momentum investors don't just pay attention to price changes; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.15 to $4.16 per share. GIII boasts an average earnings surprise of 113.4%.

With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding GIII to their portfolios.

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