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In February 2025, Investing.com’s Fair Value models identified Guess?, Inc. (NYSE:GES) as significantly undervalued, with the stock trading at just $10.16. Fast forward to today, and GES shares have surged 65%, rewarding investors who recognized this opportunity. This remarkable performance demonstrates how Fair Value analysis can help investors find better entry points, understand a stock’s intrinsic value, and make more informed decisions by combining multiple valuation methodologies. While this particular opportunity has already played out, investors seeking similar opportunities can explore the current Most undervalued list for potential new investments.
Guess?, Inc. is a global lifestyle brand that designs, markets, and distributes contemporary apparel and accessories. When InvestingPro’s Fair Value models flagged GES as undervalued in February 2025, the company had reported revenues of $2.99 billion and earnings per share of $1.15. Despite solid fundamentals and a strong financial health score of 3.78, the stock had been underperforming for six consecutive months, with February 2025 showing a 21.3% decline. This divergence between fundamentals and market price created an attractive entry point.
InvestingPro’s Fair Value analysis estimated a 50.59% upside potential for GES, with a Fair Value price of $15.30 compared to the then-current price of $10.16. What followed was a remarkable turnaround. The stock began climbing steadily, posting positive returns in seven of the next nine months, including an impressive 29.3% gain in August 2025. Today, GES trades at $17.06, representing a 65.65% return in just eight months – exceeding even InvestingPro’s bullish projection.
Recent developments have validated this analysis. In its latest quarter, Guess? beat expectations with a 7% revenue increase to $3.14 billion, while EPS improved to $1.55. The company’s European operations have been particularly strong, driving overall growth. Perhaps most significantly, news emerged that Authentic Brands is pursuing a take-private deal valued at approximately $1.4 billion, further confirming the stock’s previous undervaluation. Several analysts, including UBS and Telsey, have raised their price targets in response.
InvestingPro’s Fair Value methodology aggregates multiple valuation approaches to provide a comprehensive intrinsic value estimate. By considering discounted cash flows, comparable company analyses, dividend models, and market range analysis, the system can identify discrepancies between market price and fundamental worth. In GES’s case, the model recognized substantial value that the market had temporarily overlooked.
Investors looking to replicate this success can access InvestingPro’s suite of valuation tools, which have consistently identified mispriced stocks across various sectors. Beyond Fair Value analysis, subscribers gain access to financial health scores, proprietary ratings, and real-time fundamental data that can help identify tomorrow’s winners. Learn more about InvestingPro to discover undervalued opportunities before the market catches up.