Trade-Ideas: Hanesbrands (HBI) Is Today's New Lifetime High Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Hanesbrands as such a stock due to the following factors:
- HBI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $80.9 million.
- HBI has traded 60,162 shares today.
- HBI is trading at a new lifetime high.
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More details on HBI:
Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells a range of basic apparels for men, women, and children in the United States. The company operates through four segments: Innerwear, Activewear, Direct to Consumer, and International. The stock currently has a dividend yield of 1.2%. HBI has a PE ratio of 32.2. Currently there are 8 analysts that rate Hanesbrands a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Hanesbrands has been 2.7 million shares per day over the past 30 days. Hanesbrands has a market cap of $12.8 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.16 and a short float of 2.1% with 3.40 days to cover. Shares are up 15.8% year-to-date as of the close of trading on Wednesday.
Analysis:
rates Hanesbrands as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance, 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 high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- HBI's revenue growth has slightly outpaced the industry average of 17.4%. Since the same quarter one year prior, revenues rose by 18.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 175.00% and other important driving factors, this stock has surged by 71.46% 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.
- HANESBRANDS INC reported significant earnings per share improvement 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 $3.96 versus $3.25 in the prior year. This year, the market expects an improvement in earnings ($6.46 versus $3.96).
- 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 177.2% when compared to the same quarter one year prior, rising from $32.27 million to $89.44 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, HANESBRANDS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- You can view the full Hanesbrands Ratings Report.
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