Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Textiles, Apparel & Luxury Goods industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Textiles, Apparel & Luxury Goods Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Textiles, Apparel & Luxury Goods Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Textiles, Apparel & Luxury Goods industry for Tuesday, October 22, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Textiles, Apparel & Luxury Goods industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Crocs, Inc.’s Value Grade

Value Grade:

Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and children under Crocs and HEYDUDE Brand in the United States and internationally. The company offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, charms, flip flops, sneakers, and slippers. It sells its products through wholesalers, retail stores, e-commerce sites, third-party marketplaces, and kiosks/store-in-store locations. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Crocs, Inc. has a Value Score of 66, which is considered to be undervalued.

When you look at Crocs, Inc.’s price-to-sales ratio at 2.09 compared to the industry median at 0.76, this company has a higher price relative to revenue compared to its peers. This could make Crocs, Inc.’s stock less attractive for value investors.

Crocs, Inc.’s price-earnings ratio is 10.40 compared to the industry median at 20.00. This means it has a lower share price relative to earnings compared to its peers. This could make Crocs, Inc. more attractive for value investors.

Now, let’s assess Crocs, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 8.2, when compared to the industry median of 12.7, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Crocs, Inc.’s shareholder yield is higher than its industry median ratio of 1.85%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Crocs, Inc.’s price-to-book ratio is higher than its industry median ratio of 2.18. This could make Crocs, Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Crocs, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Crocs, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 12.20. This could make Crocs, Inc. more attractive because the lower P/FCF ratio indicates that Crocs, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Crown Crafts, Inc.’s Value Grade

Value Grade:

Crown Crafts, Inc., through its subsidiaries, operates in the consumer products industry in the United States and internationally. The company provides infant, toddler, and juvenile products, including infant and toddler beddings; blankets and swaddle blankets; dolls and plush toys; nursery and toddler accessories; room décors; reusable and disposable bibs; burp cloths; reusable and disposable placemats, and floor mats; disposable toilet seat covers and changing mats; developmental toys; feeding and care goods; and other infant, toddler, and juvenile soft goods. It sells its products primarily to mass merchants, large chain stores, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, internet accounts, wholesale clubs and internet-based retailers through a network of sales force and independent commissioned sales representatives. Crown Crafts, Inc. was incorporated in 1957 and is headquartered in Gonzales, Louisiana.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Crown Crafts, Inc. has a Value Score of 89, which is considered to be undervalued.

Crown Crafts, Inc.’s price-earnings ratio is 11.7 compared to the industry median at 20.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Crown Crafts, Inc. more attractive for value investors.

Crown Crafts, Inc.’s price-to-book ratio is higher than its peers. This could make Crown Crafts, Inc. less attractive for value investors when compared to the industry median at 2.18.

You can read more about Crown Crafts, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

PLBY Group, Inc.’s Value Grade

Value Grade:

PLBY Group, Inc. operates as a pleasure and leisure company in the United States, Australia, China, the United Kingdom, and internationally. It operates through three segments: Licensing, Direct-to-Consumer, and Digital Subscriptions and Content. The company offers sexual wellness products, such as lingerie, bedroom accessories, intimacy products, and other adult products; style and apparel products for men and women; digital entertainment and lifestyle products; and beauty and grooming products for men and women, such as skincare, haircare, bath and body, grooming, cosmetics, and fragrance. It also owns and operates digital commerce retail platforms, such as playboy.com, honeybirdette.com, yandy.com, and loversstores.com; and Honey Birdette and Lovers retail stores. In addition, the company licenses Playboy name, Rabbit Head Design, and other trademarks and related properties; and programming content to cable television operators and direct-to-home satellite television operators. Further, the company business covers the subscription sale of playboyplus.com and playboy.tv, which are online content platforms. It offers its products under its flagship brand Playboy. PLBY Group, Inc. is headquartered in Los Angeles, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

PLBY Group, Inc. has a Value Score of 84, which is considered to be undervalued.

PLBY Group, Inc.’s price-to-book ratio is higher than its peers. This could make PLBY Group, Inc. less attractive for value investors when compared to the industry median at 2.18.

You can read more about PLBY Group, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

PVH Corp.’s Value Grade

Value Grade:

PVH Corp. operates as an apparel company in the United States and internationally. The company operates through Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, and Heritage Brands Wholesale segments. It designs and markets men’s, women’s, and children’s branded apparel, footwear and accessories, underwear, sleepwear, outerwear, home furnishings, luggage, dresses, suits and swimwear, activewear, sportswear, socks and accessories, outerwear, golf products, footwear, watches and jewelry, eyeglasses and non-ophthalmic sunglasses, jeans wear, performance apparel, intimate apparel, dress shirts, handbags, fragrance, small leather goods, and other related products; and men’s and boy’s tailored clothing products, duvets, pillows, mattress pads and toppers, and feather beds. The company offers its products under its own brands, such as TOMMY HILFIGER, TOMMY JEANS, Calvin Klein, CK Calvin Klein, Calvin Klein Jeans, Calvin Klein Underwear, and Calvin Klein Performance, as well as various other owned, licensed, and private label brands. It distributes its products at wholesale in department, chain, and specialty stores; through warehouse clubs, mass market, and off-price and independent retailers; and through company-operated full-price, outlet stores, and concession locations; and through digital commerce sites. PVH Corp. was founded in 1881 and is based in New York, New York.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

PVH Corp. has a Value Score of 97, which is considered to be undervalued.

PVH Corp.’s price-earnings ratio is 7.7 compared to the industry median at 20.0. This means that it has a lower price relative to its earnings compared to its peers. This makes PVH Corp. more attractive for value investors.

PVH Corp.’s price-to-book ratio is higher than its peers. This could make PVH Corp. less attractive for value investors when compared to the industry median at 2.18.

You can read more about PVH Corp.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Superior Group of Companies, Inc.’s Value Grade

Value Grade:

Superior Group of Companies, Inc. manufactures and sells apparel and accessories in the United States and internationally. It operates through three segments: Branded Products, Healthcare Apparel, and Contact Centers. The Branded Products segment produces and sells customized merchandising solutions, promotional products, and branded uniform to chain retailer, food service, entertainment, technology, transportation, and other industries under BAMKO and HPI brands. The Healthcare Apparel segment manufactures and sells healthcare apparel, such as scrubs, lab coats, protective apparel, and patient gowns under the Fashion Seal Healthcare, CID Resources and Wink, and Carhartt brand names. This segment sells healthcare service apparel to healthcare laundries, dealers, distributors, and physical and e-commerce retailers. The Contact Centers segment offers outsourced, nearshore business process outsourcing, and contact and call-center support services. The company was formerly known as Superior Uniform Group, Inc. and changed its name to Superior Group of Companies, Inc. in May 2018. Superior Group of Companies, Inc. was founded in 1920 and is headquartered in St. Petersburg, Florida.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Superior Group of Companies, Inc. has a Value Score of 82, which is considered to be undervalued.

Superior Group of Companies, Inc.’s price-earnings ratio is 22.6 compared to the industry median at 20.0. This means that it has a higher price relative to its earnings compared to its peers. This makes Superior Group of Companies, Inc. less attractive for value investors.

Superior Group of Companies, Inc.’s price-to-book ratio is higher than its peers. This could make Superior Group of Companies, Inc. less attractive for value investors when compared to the industry median at 2.18.

You can read more about Superior Group of Companies, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Skechers U.S.A., Inc.’s Value Grade

Value Grade:

Skechers U.S.A., Inc. designs, develops, markets, and distributes footwear for men, women, and children worldwide. The company operates through Wholesale and Direct-to-Consumer segments. It offers footwear under Skechers Hands Free Slip-ins, Skechers Arch Fit, and Skechers Air-Cooled Memory Foam brands. In addition, the company provides men’s and women’s slip-resistant and safety-toe casuals, and boots for protective footwear in their work environments. It sells its products through department stores, family shoe stores, specialty running and sporting goods retailers, and big box club stores; franchisee and licensee third-party store operators; company-owned retail stores; digital commerce sites and mobile applications; and concept, factory outlet, and big box stores. The company licenses its Skechers brand. Skechers U.S.A., Inc. was incorporated in 1992 and is headquartered in Manhattan Beach, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Skechers U.S.A., Inc. has a Value Score of 65, which is considered to be undervalued.

Skechers U.S.A., Inc.’s price-earnings ratio is 16.7 compared to the industry median at 20.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Skechers U.S.A., Inc. more attractive for value investors.

Skechers U.S.A., Inc.’s price-to-book ratio is lower than its peers. This could make Skechers U.S.A., Inc. fairly attractive for value investors when compared to the industry median at 2.18.

You can read more about Skechers U.S.A., Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Tapestry, Inc.’s Value Grade

Value Grade:

Tapestry, Inc. provides luxury accessories and branded lifestyle products in North America, Greater China, rest of Asia, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women’s handbags; and women’s accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms. The company also provides men products, which includes bag collections, such as business cases, computer bags, messenger-style bags, backpacks, and totes; small leather goods including wallets, card cases, travel organizers, and belts; and footwear, watches, fragrances, sunglasses, novelty accessories, and ready-to-wear items. In addition, it offers other products including women's footwear and fragrances; eyewear and sunglasses; and jewelry, such as bracelets, necklaces, rings, and earrings, watches, and other women's seasonal lifestyle apparel collections, including outerwear, ready-to-wear and cold weather accessories, such as gloves, scarves, and hats. Further, the company provides kids items, housewares, and home accessories, such as fashion bedding and tableware, stationery, and gifts. It offers its products through retail and outlet stores, brand e-commerce sites, and concession shop-in-shops, wholesale, and third-party distributors under the Coach, Kate Spade, and Stuart Weitzman brand names. The company was formerly known as Coach, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 and is headquartered in New York, New York.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Tapestry, Inc. has a Value Score of 67, which is considered to be undervalued.

Tapestry, Inc.’s price-earnings ratio is 12.7 compared to the industry median at 20.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Tapestry, Inc. more attractive for value investors.

Tapestry, Inc.’s price-to-book ratio is lower than its peers. This could make Tapestry, Inc. more attractive for value investors when compared to the industry median at 2.18.

You can read more about Tapestry, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Textiles, Apparel & Luxury Goods Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Textiles, Apparel & Luxury Goods stocks as well as other industrys.

Choosing Which of the 7 Best Textiles, Apparel & Luxury Goods Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Crocs, Inc. stock has a Value Grade of B.
• Crown Crafts, Inc. stock has a Value Grade of A.
• PLBY Group, Inc. stock has a Value Grade of A.
• PVH Corp. stock has a Value Grade of A.
• Superior Group of Companies, Inc. stock has a Value Grade of A.
• Skechers U.S.A., Inc. stock has a Value Grade of B.
• Tapestry, Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Textiles, Apparel & Luxury Goods industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Textiles, Apparel & Luxury Goods Stocks

Want to learn more about Textiles, Apparel & Luxury Goods stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 6 Undervalued Textiles, Apparel & Luxury Goods Stocks for Tuesday, October 22
• 7 Undervalued Textiles, Apparel & Luxury Goods Stocks for Monday, October 21
• 5 Undervalued Textiles, Apparel & Luxury Goods Stocks for Friday, October 18
• 3 Undervalued Textiles, Apparel & Luxury Goods Stocks for Thursday, October 17

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