Hanesbrands (HBI) Is Today's Strong And Under The Radar 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 Hanesbrands ( HBI) as a strong and under the radar 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 $107.6 million.
  • HBI is making at least a new 3-day high.
  • HBI has a PE ratio of 30.7.
  • HBI is mentioned 1.87 times per day on StockTwits.
  • HBI has not yet been mentioned on StockTwits today.
  • HBI is currently in the upper 20% of its 1-year range.
  • HBI is in the upper 35% of its 20-day range.
  • HBI is in the upper 45% of its 5-day range.
  • HBI is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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, designs, manufactures, sources, and sells various basic apparels primarily in the United States. The company operates in four segments: Innerwear, Activewear, Direct to Consumer, and International. The stock currently has a dividend yield of 1.1%. HBI has a PE ratio of 30.7. Currently there are 5 analysts that rate Hanesbrands a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Hanesbrands has been 664,900 shares per day over the past 30 days. Hanesbrands has a market cap of $10.6 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.19 and a short float of 1.1% with 1.14 days to cover. Shares are up 50.7% 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 revenue growth, growth in earnings per share, increase in net income, expanding profit margins and solid stock price performance. 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:
  • HBI's revenue growth has slightly outpaced the industry average of 11.8%. Since the same quarter one year prior, revenues rose by 11.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HANESBRANDS INC has improved earnings per share by 26.9% 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. We feel that this trend should continue. During the past fiscal year, HANESBRANDS INC increased its bottom line by earning $3.25 versus $2.31 in the prior year. This year, the market expects an improvement in earnings ($5.59 versus $3.25).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Textiles, Apparel & Luxury Goods industry average. The net income increased by 27.1% when compared to the same quarter one year prior, rising from $121.59 million to $154.58 million.
  • 39.58% is the gross profit margin for HANESBRANDS 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 11.51% is above that of the industry average.
  • Powered by its strong earnings growth of 26.89% and other important driving factors, this stock has surged by 69.01% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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

null

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers