Trade-Ideas: Gildan Activewear (GIL) 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 Gildan Activewear ( GIL) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Gildan Activewear as such a stock due to the following factors:

  • GIL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.5 million.
  • GIL has traded 202,889 shares today.
  • GIL is trading at a new lifetime high.

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More details on GIL:

Gildan Activewear Inc. engages in the manufacture and sale of apparel products primarily in the United States, Canada, and Europe. It sells T-shirts, fleece, and sport shirts to wholesale distributors under the Gildan brand name. The stock currently has a dividend yield of 0.8%. GIL has a PE ratio of 18.6. Currently there are 8 analysts that rate Gildan Activewear a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Gildan Activewear has been 205,600 shares per day over the past 30 days. Gildan Activewear has a market cap of $5.8 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are up 29.7% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Gildan Activewear as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • 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 47.3% when compared to the same quarter one year prior, rising from $78.64 million to $115.83 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.7%. Since the same quarter one year prior, revenues slightly increased by 2.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • GIL's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, GIL has a quick ratio of 1.60, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 46.87% and other important driving factors, this stock has surged by 51.74% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • 35.99% is the gross profit margin for GILDAN ACTIVEWEAR INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.85% is above that of the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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