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 Retailers - Apparel & Accessories 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.

Latest Retailers - Apparel & Accessories Stock News

Before choosing which top Retailers - Apparel & Accessories stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

The outlook for the Apparel Retail sub-industry is positive reflecting a positive outlook on the off-price channel, which makes up 77% of the market capitalization in index and our neutral outlook on mall-based apparel brands. In August, The University of Michigan’s Index of Consumer Sentiment dropped to 70.2, the lowest level since the COVID-19 pandemic began. While the pandemic restrictions have slowed significantly, increased shipping and manufacturing costs have become the largest obstacles. These delays are now transferring to the consumer in the form of product shortages and price increases. With the holiday season coming soon, retailers can expect to see normal cyclical boots in revenues. However, e-commerce is rapidly deteriorating the sales recognized at brick-and-mortar stores. Year-to-date through August 16, S&P Composite 1500 Apparel Retail Index rose 18.5%, in line with the S&P 1500 Composite Index gain of 19.0%.

Why Focus on Undervalued Retailers - Apparel & Accessories 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 Retailers - Apparel & Accessories 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 Retailers - Apparel & Accessories industry for Thursday, December 29, 2022. Let’s take a closer look at their individual scores to see how they measure up against each other and the Retailers - Apparel & Accessories 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.

Torrid Holdings Inc’s Value Grade

Value Grade:

Torrid Holdings Inc. is a direct-to-consumer brand of women's plus-size apparel, intimates and accessories in North America. The Company's product is designed for plus-size women and is focused on fit. It offers products across a range of assortment that includes tops, bottoms, denim, dresses, intimates, activewear, footwear and accessories. The Company markets directly to consumers through its e-commerce platform and its physical footprint of approximately 624 stores in the United States, Puerto Rico and Canada. The Company's brands include Torrid and Torrid Curve. The Company's Torrid Curve provides a line of bras, activewear, loungewear, lingerie wear and sleep wear. It offers wire-free, T-shirt, and strapless bras. Its footwear and accessories include boots, sneakers, hats, belts among others. The Company provides a Website and mobile application feature which provides updates on new collections, guidance on how to wear, and put together outfits.

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.

Torrid Holdings Inc has a Value Score of 93, which is considered to be undervalued.

When you look at Torrid Holdings Inc’s price-to-sales ratio at 0.22 compared to the industry median at 0.72, this company has a lower price relative to revenue compared to its peers. This could make Torrid Holdings Inc’s stock more attractive for value investors.

Torrid Holdings Inc’s price-earnings ratio is 9.0 compared to the industry median at 12.7. This means it has a lower share price relative to earnings compared to its peers. This could make Torrid Holdings Inc more attractive for value investors.

Now, let’s assess Torrid Holdings Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 5.4, when compared to the industry median of 7.7, 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.

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. Torrid Holdings Inc’s price-to-book ratio is higher than its industry median ratio of 1.64. This could make Torrid Holdings Inc less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Torrid Holdings Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Torrid Holdings Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 18.6. This could make Torrid Holdings Inc more attractive because the lower P/FCF ratio indicates that Torrid Holdings 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.

Destination XL Group Inc’s Value Grade

Value Grade:

Destination XL Group, Inc. is a specialty retailer of big and tall men's clothing with retail and direct operations in the United States. The Company operates through the Retail segment. The Company operates under the trade names of Destination XL, DXL, DXL Outlets, Casual Male XL and Casual Male XL Outlets. It operates DXL Big + Tall retail and outlet stores and Casual Male XL retail and outlet stores throughout the United States, and a digital commerce Website, DXL.com, and mobile application, which offer a multi-channel solution similar to the DXL store experience with the extensive selection of online products available anywhere for Big + Tall men. The Company operates 218 Destination XL stores, 16 DXL outlet stores, 30 Casual Male XL retail stores, 19 Casual Male XL outlet stores, and a digital business, including an e-commerce site at dxl.com and a mobile site, m.destinationXL.com, mobile application and third-party marketplaces.

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.

Destination XL Group Inc has a Value Score of 76, which is considered to be undervalued.

Destination XL Group Inc’s price-earnings ratio is 4.7 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Destination XL Group Inc more attractive for value investors.

Destination XL Group Inc’s price-to-book ratio is lower than its peers. This could make Destination XL Group Inc more attractive for value investors when compared to the industry median at 1.64.

You can read more about Destination XL 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.

Express, Inc.’s Value Grade

Value Grade:

Express, Inc. (Express) is a multichannel apparel and accessories brand. The Company is engaged in operating its express brick-and-mortar retail and outlet stores, e-commerce operations, and franchise operations. Express operates approximately 550 primarily mall-based retail stores in 46 states across the United States, as well as in the District of Columbia and Puerto Rico as well as 203 factory outlet stores. It also sells its products through its e-commerce Website, www.express.com, and its mobile app, as well as through franchisees who operate Express locations in Latin America. The Company also sells gift cards in its stores, on its e-commerce Website, and through third parties. It utilizes two facilities for the distribution of its product, both of which are owned and operated by third parties. Virtually all the merchandise sold in its stores and on its Website is received and processed at a central distribution facility in Columbus, Ohio.

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.

Express, Inc. has a Value Score of 79, which is considered to be undervalued.

Express, Inc.’s price-earnings ratio is 0.0 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Express, Inc. more attractive for value investors.

Express, Inc.’s price-to-book ratio is higher than its peers. This could make Express, Inc. less attractive for value investors when compared to the industry median at 1.64.

You can read more about Express, 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.

JJill Inc’s Value Grade

Value Grade:

J.Jill, Inc. (J.Jill) is an omnichannel retailer of women's apparel. J.Jill is a women's apparel brand focused on customers in the 45 age segment. Its products are marketed under the J.Jill brand name and sold primarily through its Retail and Direct channels. It operates 247 stores nationwide and an e-commerce platform. Its diverse assortment of apparel spans knit and woven tops, bottoms and dresses as well as sweaters and outerwear. It also offers a range of complementary footwear and accessories, including scarves, jewelry and hosiery. Its products are available across a full range of sizes including Misses, Petites, Women's and Tall, and reflect a modern balance of style, quality, comfort and ease at accessible price points. It offers two sub-brands as extensions of its brand aesthetic: Pure Jill and Wearever. Pure Jill sub-brand reflects the art of understated ease. Wearever sub-brand consists of its refined rayon jersey knit collection that is designed for work, travel, and home.

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.

JJill Inc has a Value Score of 94, which is considered to be undervalued.

JJill Inc’s price-earnings ratio is 5.1 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes JJill Inc more attractive for value investors.

JJill Inc’s price-to-book ratio is higher than its peers. This could make JJill Inc less attractive for value investors when compared to the industry median at 1.64.

You can read more about JJill 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. is a global consumer and lifestyle company. The Company operates through three segments: Licensing, Direct-to-Consumer, and Digital Subscriptions and Content. Its Licensing segment includes the licensing of one or more of its trademarks and/or images for consumer products and location-based entertainment businesses. Its Direct-to-Consumer segment includes consumer products sold through third-party retailers or online direct-to-customer. Its Digital Subscriptions and Content segment includes the licensing of one or more of its trademarks and/or images for online gaming and the production, marketing and sales of programming under the Playboy brand name, which is distributed through various channels, including domestic and international television and sales of tokenized digital art and collectibles. The Company's products are classified under four market categories: sexual wellness, style and apparel, gaming and lifestyle, and beauty and grooming.

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 67, which is considered to be undervalued.

Plby Group Inc’s price-earnings ratio is 0.0 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Plby Group Inc more attractive for value investors.

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 1.64.

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.

Children's Place Inc’s Value Grade

Value Grade:

The Children's Place, Inc. is a children's specialty apparel retailer in North America. It provides apparel, footwear, accessories, and other items for children and tweens. The Company designs, contracts to manufacture, sells at retail and wholesale, and licenses to sell merchandise under The Children?s Place, Place, Baby Place, Gymboree, and Sugar & Jade brand names. Its segments include The Children?s Place U.S. and The Children?s Place International. The Children?s Place U.S. segment includes the United States and Puerto Rico-based stores. The Children's Place International segment includes Canadian based stores, wholesale customers, as well as international franchisees. The Company serves the wardrobe needs of girls and boys (sizes 4-18), toddler girls and boys (sizes 6 months-5T), and baby (sizes 0-24 months). It has online stores at www.childrensplace.com, www.gymboree.com and www.sugarandjade.com. It operates approximately 703 stores in the United States, Canada and Puerto Rico.

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.

Children's Place Inc has a Value Score of 77, which is considered to be undervalued.

Children's Place Inc’s price-earnings ratio is 5.6 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Children's Place Inc more attractive for value investors.

Children's Place Inc’s price-to-book ratio is lower than its peers. This could make Children's Place Inc more attractive for value investors when compared to the industry median at 1.64.

You can read more about Children's Place 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.

Signet Jewelers Ltd.’s Value Grade

Value Grade:

Signet Jewelers Limited is a Bermuda-based holding company. The Company is a retailer of diamond jewelry. Its segments include North America, International and Other. The North America segment operates across the United States and Canada. Its United States stores operate nationally in malls and off-mall locations principally as Kay (Kay Jewelers and Kay Outlet), Zales (Zales Jewelers and Zales Outlet), Jared (Jared The Galleria Of Jewelry and Jared Vault), Diamonds Direct, James Allen, Banter by Piercing Pagoda, which operates through mall-based kiosks, and Rocksbox. Its Canadian stores operate as Peoples Jewellers. The International segment operates stores in the United Kingdom, the Republic of Ireland and the Channel Islands. Its stores operate in shopping malls and off-mall locations principally under the H. Samuel and Ernest Jones banners. The Other segment primarily consists of subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones.

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.

Signet Jewelers Ltd. has a Value Score of 84, which is considered to be undervalued.

Signet Jewelers Ltd.’s price-earnings ratio is 11.2 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Signet Jewelers Ltd. more attractive for value investors.

Signet Jewelers Ltd.’s price-to-book ratio is lower than its peers. This could make Signet Jewelers Ltd. more attractive for value investors when compared to the industry median at 1.64.

You can read more about Signet Jewelers Ltd.’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 Retailers - Apparel & Accessories 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 Retailers - Apparel & Accessories stocks as well as other industrys.

Choosing Which of the 7 Best Retailers - Apparel & Accessories 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.

• Torrid Holdings Inc stock has a Value Grade of A.
• Destination XL Group Inc stock has a Value Grade of B.
• Express, Inc. stock has a Value Grade of B.
• JJill Inc stock has a Value Grade of A.
• Plby Group Inc stock has a Value Grade of B.
• Children's Place Inc stock has a Value Grade of B.
• Signet Jewelers Ltd. stock has a Value Grade of A.

Now that you have a bit more background about each of the 7 undervalued stocks in the Retailers - Apparel & Accessories 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 Retailers - Apparel & Accessories Stocks

Want to learn more about Retailers - Apparel & Accessories 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.

• 7 Undervalued Retailers - Apparel & Accessories Stocks for Thursday, December, 29
• Which Is a Better Investment, Capri Holdings Ltd or Foot Locker, Inc. Stock?
• Which Is a Better Investment, Buckle Inc or Urban Outfitters, Inc. Stock?
• Which Is a Better Investment, American Eagle Outfitters Inc or Gap Inc Stock?

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