Subscribe to Entrepreneur for $5
Subscribe

HanesBrands (HBI) Gains But Lags Market: What You Should Know

HanesBrands (HBI) closed the most recent trading day at $16.21, moving +0.37% from the previous trading session.

By
This story originally appeared on Zacks

In the latest trading session, HanesBrands (HBI) closed at $16.21, marking a +0.37% move from the previous day. This change lagged the S&P 500's 0.62% gain on the day. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.03%.

- Zacks

Coming into today, shares of the underwear, T-shirt and sock maker had lost 5.43% in the past month. In that same time, the Consumer Discretionary sector lost 3.13%, while the S&P 500 gained 0.87%.

Investors will be hoping for strength from HanesBrands as it approaches its next earnings release. In that report, analysts expect HanesBrands to post earnings of $0.43 per share. This would mark year-over-year growth of 13.16%. Meanwhile, our latest consensus estimate is calling for revenue of $1.75 billion, down 2.96% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.82 per share and revenue of $6.8 billion. These totals would mark changes of +25.52% and +2%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for HanesBrands. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. HanesBrands is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, HanesBrands currently has a Forward P/E ratio of 8.9. Its industry sports an average Forward P/E of 15.29, so we one might conclude that HanesBrands is trading at a discount comparatively.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.



More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.

Click here for the 4 trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Hanesbrands Inc. (HBI): Free Stock Analysis Report

 

To read this article on Zacks.com click here.

 

Zacks Investment Research