Rating Change #9
Hanesbrands (HBI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.
Highlights from the ratings report include:
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, HANESBRANDS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Textiles, Apparel & Luxury Goods industry average, but is less than that of the S&P 500. The net income increased by 31.8% when compared to the same quarter one year prior, rising from $36.51 million to $48.11 million.
- HANESBRANDS INC has improved earnings per share by 32.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HANESBRANDS INC increased its bottom line by earning $2.16 versus $0.54 in the prior year. This year, the market expects an improvement in earnings ($2.84 versus $2.16).
- HBI's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 11.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
Hanesbrands Inc., a consumer goods company, engages in the design, manufacture, sourcing, and sale of apparel essentials in the United States and internationally. The company has a P/E ratio of 11.9, equal to the average consumer non-durables industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Hanesbrands has a market cap of $2.6 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are up 6.9% year to date as of the close of trading on Tuesday.You can view the full Hanesbrands Ratings Report or get investment ideas from our investment research center.
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