Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 stocks made the list for top value stocks in the 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 Apparel & Accessories Stock News

Before choosing which top 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, accessories, and luxury goods is neutral. Analysts forecast a major shift in consumer spending in the latter half of 2021. As a result, more retailers are expected to go out of business. Reacting to an increased threat of store closures and bloated inventories, manufacturers will have significant order cutback, causing a supply chain shock. These same suppliers will struggle to keep a handle on their expenses such as wages, overhead, and raw materials costs. More and more, apparel brands are redefining the way they interact with their customers and the consumer experience. This likely involves cutting out the middleman going forward. There are major benefits to this approach however, such as building more personal relationships with apparel brands’ client base, maximizing margins, and tailoring market strategies to the ideal demographic. Additionally, apparel makers seek to utilize AI technology in their stores, allowing customers to see how items of clothing fit virtual mannequins or themselves before making the purchase. Early results from Zeekit show a 36% reduction in customer return rates due to this technology. Analysts forecast private label dollar share and units sold hitting 40% in 2021, which would reflect a more than six percentage point growth since 2017.

Why Focus on Undervalued 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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4 Undervalued Apparel & Accessories Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Apparel & Accessories industry for Wednesday, November 01, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the 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.

Superior Group of Companies Inc’s Value Grade

Value Grade:

Superior Group of Companies, Inc. is engaged in the designing, manufacturing and distribution of uniforms to domestic retailers, foodservice chains, transportation and other service industries throughout the United States. Its segments include Branded Products, Healthcare Apparel and Contact Centers. The Branded Products segment, through its brands BAMKO and HPI, produces and sells customized merchandising solutions, promotional products and branded uniform programs. The Healthcare Apparel segment, primarily through its brands Fashion Seal Healthcare and WonderWink, manufactures and sells a range of healthcare apparel, such as scrubs, lab coats, protective apparel and patient gowns. The Contact Centers segment, through multiple The Office Gurus entities, including subsidiaries in El Salvador, Belize, Jamaica, Dominican Republic and the United States, provides outsourced, nearshore business process outsourcing, contact and call-center support services to North American customers.

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 94, which is considered to be undervalued.

When you look at Superior Group of Companies Inc’s price-to-sales ratio at 0.23 compared to the industry median at 0.52, this company has a lower price relative to revenue compared to its peers. This could make Superior Group of Companies Inc’s stock more attractive for value investors.

Now, let’s assess Superior Group of Companies Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 9.3, when compared to the industry median of 9.3, the company may be considered overvalued 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. Superior Group of Companies Inc’s shareholder yield is higher than its industry median ratio of 0.86%. 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. Superior Group of Companies Inc’s price-to-book ratio is lower than its industry median ratio of 1.52. This could make Superior Group of Companies Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Superior Group of Companies Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Superior Group of Companies Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 22.61. This could make Superior Group of Companies Inc more attractive because the lower P/FCF ratio indicates that Superior Group of Companies 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.

Under Armour Inc’s Value Grade

Value Grade:

Under Armour, Inc. is a marketer and distributor of branded athletic performance apparel, footwear, and accessories. It is engaged in developing, marketing, and distributing branded athletic performance apparel, footwear and accessories for men, women, and youth. It operates in four geographic segments: North America, comprising the United States and Canada; Europe, the Middle East and Africa, Asia-Pacific, and Latin America. North America segment sells apparel, footwear, and accessories in North America through its wholesale and direct-to-consumer channels. EMEA sells apparel, footwear and accessories through wholesale customers and independent distributors, along with e-commerce websites and Brand and Factory House stores. Asia-Pacific sells apparel, footwear and accessories products in China, South Korea, Australia, Singapore, Malaysia, and Thailand through stores operated by its distribution and wholesale partners, along with e-commerce websites and Brand and Factory House stores.

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.

Under Armour Inc has a Value Score of 78, which is considered to be undervalued.

Under Armour Inc’s price-earnings ratio is 8.1 compared to the industry median at 17.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Under Armour Inc more attractive for value investors.

Under Armour Inc’s price-to-book ratio is lower than its peers. This could make Under Armour Inc fairly attractive for value investors when compared to the industry median at 1.52.

You can read more about Under Armour 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.

VF Corp’s Value Grade

Value Grade:

V.F. Corporation is an apparel, footwear, and accessories company. The Company owns a broad portfolio of brands in the outerwear, footwear, apparel, backpack, luggage, and accessories categories. Its brands include Vans, The North Face, Timberland, and Dickies. The Company operates through three segments: Outdoor segment, Active segment, and Work segment. The Outdoor segment's product offerings include performance-based and outdoor apparel, footwear and equipment. The Active segment's product offerings include active apparel, footwear, backpacks, luggage and accessories. Its Work segment consists of work and work-inspired lifestyle brands with product offerings that include apparel, footwear and accessories. Its brands include Dickies, and Timberland PRO. The Company's direct-to-consumer business includes VF-operated retail stores, brand e-commerce sites, concession retail locations and other digital platforms.

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.

VF Corp has a Value Score of 70, which is considered to be undervalued.

VF Corp’s price-to-book ratio is lower than its peers. This could make VF Corp more attractive for value investors when compared to the industry median at 1.52.

You can read more about VF 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.

Vera Bradley, Inc.’s Value Grade

Value Grade:

Vera Bradley, Inc. is a designer of women's handbags, luggage and other travel items, fashion, and home accessories. The Company operates through three segments: Vera Bradley Direct (VB Direct), Vera Bradley Indirect (VB Indirect), and Pura Vida. The VB Direct business consists of sales of Vera Bradley products through Vera Bradley full-line and factory outlet stores in the United States; e-commerce sites verabradley.com and verabradley.ca; the Vera Bradley online outlet site; and typically, the Vera Bradley annual outlet sale in Fort Wayne, Indiana. The VB Indirect business consists of sales of Vera Bradley products to, specialty retail locations, all of which are located in the United States; sales to department stores, national accounts, third-party e-commerce sites, and third-party inventory liquidators; and royalties recognized through licensing agreements related to the Vera Bradley brand. Pura Vida is a digital native lifestyle brand.

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.

Vera Bradley, Inc. has a Value Score of 82, which is considered to be undervalued.

Vera Bradley, Inc.’s price-to-book ratio is higher than its peers. This could make Vera Bradley, Inc. less attractive for value investors when compared to the industry median at 1.52.

You can read more about Vera Bradley, 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 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 Apparel & Accessories stocks as well as other industrys.

Choosing Which of the 4 Best 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.

• Superior Group of Companies Inc stock has a Value Grade of A.
• Under Armour Inc stock has a Value Grade of B.
• VF Corp stock has a Value Grade of B.
• Vera Bradley, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 4 undervalued stocks in the 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 Apparel & Accessories Stocks

Want to learn more about 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.

• 4 Undervalued Apparel & Accessories Stocks for Wednesday, November 01
• Why VF Corp’s (VFC) Stock Is Down 13.96%
• 3 Undervalued Apparel & Accessories Stocks for Monday, October 30
• 3 Undervalued Apparel & Accessories Stocks for Friday, October 27

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