Rating Change #4
(HBI - Get Report)
has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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Highlights from the ratings report include:
- Powered by its strong earnings growth of 312.50% and other important driving factors, this stock has surged by 65.51% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HBI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 291.5% when compared to the same quarter one year prior, rising from -$26.83 million to $51.38 million.
- 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.
- Net operating cash flow has increased to -$79.07 million or 15.98% when compared to the same quarter last year. In addition, HANESBRANDS INC has also modestly surpassed the industry average cash flow growth rate of 6.32%.
- 37.10% is the gross profit margin for HANESBRANDS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.43% trails the industry average.
Hanesbrands Inc., a consumer goods company, engages in designing, manufacturing, sourcing, and selling a range of basic apparel in the United States. The company has a P/E ratio of 20.3, above the S&P 500 P/E ratio of 17.7. Hanesbrands has a market cap of $4.62 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are up 34% year to date as of the close of trading on Wednesday.
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