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HanesBrands (HBI) Dips More Than Broader Markets: What You Should Know

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HanesBrands (HBI - Free Report) closed at $13.76 in the latest trading session, marking a -1.43% move from the prior day. This change lagged the S&P 500's 0.44% loss on the day. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, added 0.5%.

Heading into today, shares of the underwear, T-shirt and sock maker had gained 12.13% over the past month, outpacing the Consumer Discretionary sector's gain of 9.82% and the S&P 500's gain of 2.71% in that time.

HBI will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.30, down 41.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.63 billion, down 6.99% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.36 per share and revenue of $6.49 billion. These totals would mark changes of -22.73% and -6.82%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for HBI. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.26% lower. HBI currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that HBI has a Forward P/E ratio of 10.29 right now. This represents a discount compared to its industry's average Forward P/E of 24.

Meanwhile, HBI's PEG ratio is currently 3.12. 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. HBI's industry had an average PEG ratio of 3.88 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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