Hanesbrands Inc (HBI): Today's Featured Consumer Goods Laggard

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.

Hanesbrands ( HBI) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.9%. By the end of trading, Hanesbrands fell $1.84 (-2.6%) to $69.11 on heavy volume. Throughout the day, 1,225,596 shares of Hanesbrands exchanged hands as compared to its average daily volume of 684,100 shares. The stock ranged in price between $68.91-$71.80 after having opened the day at $71.29 as compared to the previous trading day's close of $70.95. Other companies within the Consumer Goods sector that declined today were: Crumbs Bake Shop ( CRMB), down 6.3%, Forward Industries ( FORD), down 6.1%, Ever-Glory International Group ( EVK), down 5.2% and Herbalife ( HLF), down 4.7%.

Hanesbrands Inc., a consumer goods company, engages in designing, manufacturing, sourcing, and selling a range of basic apparel in the United States. Hanesbrands has a market cap of $6.9 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are up 98.1% year to date as of the close of trading on Thursday. Currently there are 6 analysts that rate Hanesbrands a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet 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.

On the positive front, China New Borun Corporation ( BORN), up 22.4%, Farmer Bros ( FARM), up 9.3%, Tandy Brands Accessories ( TBAC), up 7.7% and Verso Paper ( VRS), up 6.9% , were all gainers within the consumer goods sector with Colgate-Palmolive Company ( CL) being today's featured consumer goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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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