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

Zacks Equity Research
·3 min read

In the latest trading session, HanesBrands (HBI) closed at $16.51, marking a -0.06% move from the previous day. This move lagged the S&P 500's daily gain of 1.2%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 1.64%.

Coming into today, shares of the underwear, T-shirt and sock maker had gained 4.89% in the past month. In that same time, the Consumer Discretionary sector lost 3.8%, while the S&P 500 lost 2.23%.

Wall Street will be looking for positivity from HBI as it approaches its next earnings report date. This is expected to be November 5, 2020. On that day, HBI is projected to report earnings of $0.36 per share, which would represent a year-over-year decline of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.60 billion, down 14.06% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.45 per share and revenue of $6.32 billion. These totals would mark changes of -17.61% and -9.35%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for HBI. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.8% higher. HBI is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note HBI's current valuation metrics, including its Forward P/E ratio of 11.43. This represents a discount compared to its industry's average Forward P/E of 43.53.

Meanwhile, HBI's PEG ratio is currently 3.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Textile - Apparel was holding an average PEG ratio of 6.07 at yesterday's closing price.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% 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.

To follow HBI in the coming trading sessions, be sure to utilize Zacks.com.


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