Trade-Ideas: Hanesbrands (HBI) Is Today's Post-Market Leader Stock - TheStreet

Trade-Ideas LLC identified

Hanesbrands

(

HBI

) as a post-market leader 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 $171.3 million.
  • HBI is up 3.3% today from today's close.

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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 1.5%. HBI has a PE ratio of 31. 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 4.2 million shares per day over the past 30 days. Hanesbrands has a market cap of $10.9 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.22 and a short float of 3.3% with 1.90 days to cover. Shares are down 3.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Hanesbrands as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 14.5%. Since the same quarter one year prior, revenues rose by 13.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 40.78% 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 6.23% trails the industry average.
  • HANESBRANDS INC's earnings per share declined by 39.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HANESBRANDS INC increased its bottom line by earning $0.99 versus $0.81 in the prior year. This year, the market expects an improvement in earnings ($1.64 versus $0.99).
  • After a year of stock price fluctuations, the net result is that HBI's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness 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.

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