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HanesBrands (HBI) Gains But Lags Market: What You Should Know

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HanesBrands (HBI - Free Report) closed the most recent trading day at $5.09, moving +0.99% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.3%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 7.48%.

Coming into today, shares of the underwear, T-shirt and sock maker had lost 11.73% in the past month. In that same time, the Consumer Discretionary sector lost 7.25%, while the S&P 500 lost 2.95%.

Wall Street will be looking for positivity from HanesBrands as it approaches its next earnings report date. The company is expected to report EPS of -$0.06, down 117.65% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.38 billion, down 12.75% from the year-ago period.

HBI's full-year Zacks Consensus Estimates are calling for earnings of $0.35 per share and revenue of $6.1 billion. These results would represent year-over-year changes of -64.29% and -2.11%, respectively.

It is also important to note the recent changes to analyst estimates for HanesBrands. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.78% lower. HanesBrands currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, HanesBrands is holding a Forward P/E ratio of 14.4. For comparison, its industry has an average Forward P/E of 10.6, which means HanesBrands is trading at a premium to the group.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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