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 $9.5 million.
  • GIL has traded 3,093 shares today.
  • GIL is trading at a new lifetime high.

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More details on GIL:

Gildan Activewear Inc. manufactures and sells apparel products in the United States, Canada, Europe, and the Asia-Pacific region. It operates in two segments, Printwear and Branded Apparel. The stock currently has a dividend yield of 0.8%. GIL has a PE ratio of 21.0. Currently there are 8 analysts that rate Gildan Activewear a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Gildan Activewear has been 227,300 shares per day over the past 30 days. Gildan Activewear has a market cap of $6.9 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are up 6.1% 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 Gildan Activewear as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 14.8%. Since the same quarter one year prior, revenues slightly increased by 4.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.30, which illustrates the ability to avoid short-term cash problems.
  • 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 39.41% 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, GIL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • GILDAN ACTIVEWEAR INC has improved earnings per share by 8.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, GILDAN ACTIVEWEAR INC increased its bottom line by earning $2.61 versus $1.21 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the Textiles, Apparel & Luxury Goods industry average, but is less than that of the S&P 500. The net income increased by 9.6% when compared to the same quarter one year prior, going from $72.28 million to $79.19 million.

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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