Hanesbrands Inc (HBI): Today's Featured Consumer Non-Durables Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Hanesbrands ( HBI) pushed the Consumer Non-Durables industry lower today making it today's featured Consumer Non-Durables laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Hanesbrands fell 48 cents (-1.1%) to $41.18 on heavy volume. Throughout the day, 1.8 million shares of Hanesbrands exchanged hands as compared to its average daily volume of 980,100 shares. The stock ranged in price between $41.01-$41.95 after having opened the day at $41.71 as compared to the previous trading day's close of $41.66. Other companies within the Consumer Non-Durables industry that declined today were: Verso Paper ( VRS), down 12.9%, Vera Bradley ( VRA), down 9.2%, China Shengda Packaging Group ( CPGI), down 6.8%, and Zuoan Fashion ( ZA), down 6.8%.
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Hanesbrands Inc., a consumer goods company, engages in designing, manufacturing, sourcing, and selling a range of basic apparels in the United States and internationally. Hanesbrands has a market cap of $3.97 billion and is part of the consumer goods sector. The company has a P/E ratio of 17.4, below the S&P 500 P/E ratio of 17.7. Shares are up 16.3% year to date as of the close of trading on Wednesday. Currently there are six analysts that rate Hanesbrands a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Hanesbrands as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally poor debt management and poor profit margins.

On the positive front, Joe's Jeans ( JOEZ), up 9.9%, Coldwater Creek ( CWTR), up 8.7%, DS Healthcare Group ( DSKX), up 6.7%, and Tandy Brands Accessories ( TBAC), up 5.3%, were all gainers within the consumer non-durables industry with Lululemon Athletica ( LULU) being today's featured consumer non-durables industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer non-durables industry could consider Consumer Staples Select Sector SPDR ( XLP) while those bearish on the consumer non-durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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