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HanesBrands (HBI) Gains As Market Dips: What You Should Know

Zacks Equity Research
·3 mins read

HanesBrands (HBI) closed the most recent trading day at $16.15, moving +1.25% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.96%. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq lost 2.22%.

Heading into today, shares of the underwear, T-shirt and sock maker had gained 2.84% over the past month, outpacing the Consumer Discretionary sector's loss of 1.42% and the S&P 500's loss of 4.04% in that time.

Investors will be hoping for strength from HBI as it approaches its next earnings release. In that report, analysts expect HBI to post earnings of $0.36 per share. This would mark a year-over-year decline of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $1.60 billion, down 14.06% from the prior-year quarter.

HBI's full-year Zacks Consensus Estimates are calling for earnings of $1.43 per share and revenue of $6.32 billion. These results would represent year-over-year changes of -18.75% and -9.35%, respectively.

Any recent changes to analyst estimates for HBI should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. HBI is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, HBI is holding a Forward P/E ratio of 11.12. This represents a discount compared to its industry's average Forward P/E of 43.71.

Also, we should mention that HBI has a PEG ratio of 3.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Textile - Apparel stocks are, on average, holding a PEG ratio of 6.47 based on yesterday's closing prices.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 125, which puts it in the top 50% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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