G-III Apparel Has Tons of Value Despite the Stock's New Lifetime Highs

NEW YORK (TheStreet) -- Shares of specialty retailer G-III Apparel (GIII) have skyrocketed more than 18% in just the past few trading sessions. If you're still on the sidelines waiting for a better entry point in GIII stock, good luck with that. Be prepared to wait a while longer.

Granted, at around $67 per share and up some 32% on the year, GIII stock is not cheap. Shares currently trade at 27 times trailing earnings. Compare that to the S&P 500 (SPY), which has an average price-to-earnings ratio of 21. But when has anything ever kept shares of good companies from going higher? The stock has never made it to the discount bin, and the shares are up some 38% in a span of only six months.

Why has GIII stock done so well? The company's margin expansion and strategic M&A deals have become a working formula. The New York-based retailer is also benefiting from a business that sells not only dresses, suits, sportswear and footwear, it also extends to luggage and handbags.

What sets the company apart even more? In addition to its own products, GIII also sells licensed apparel from well-known brands such as Calvin Klein, Kenneth Cole (KCP), Guess? (GES) and Estee Lauder's (EL) Tommy Hilfiger, to name a few. And these advantages recently helped the company deliver first-quarter revenue and earnings that topped Wall Street estimates.

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