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 Hanesbrands ( HBI) 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 $47.5 million.
- HBI has traded 674,656 shares today.
- HBI is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in HBI with the Ticky from Trade-Ideas. See the FREE profile for HBI NOW at Trade-Ideas More details on HBI: Hanesbrands Inc., a consumer goods company, engages in designing, manufacturing, sourcing, and selling a range of basic apparel in the United States. The stock currently has a dividend yield of 1.1%. HBI has a PE ratio of 18.9. Currently there are 6 analysts that rate Hanesbrands a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for Hanesbrands has been 687,100 shares per day over the past 30 days. Hanesbrands has a market cap of $6.9 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 4.1% with 4.80 days to cover. Shares are up 94.8% year-to-date as of the close of trading on Wednesday. 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 Hanesbrands as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, expanding profit margins, growth in earnings per share and increase 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:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 100.62% over the past year, a rise that has exceeded that of the S&P 500 Index. 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.
- 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.
- 37.02% 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 10.46% trails the industry average.
- HANESBRANDS INC has improved earnings per share by 10.8% 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 reported lower earnings of $2.31 versus $2.44 in the prior year. This year, the market expects an improvement in earnings ($3.83 versus $2.31).
- HBI, with its decline in revenue, slightly underperformed the industry average of 7.0%. Since the same quarter one year prior, revenues slightly dropped by 1.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Hanesbrands Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.