Back to top

Image: Bigstock

Why the Market Dipped But HanesBrands (HBI) Gained Today

Read MoreHide Full Article

In the latest market close, HanesBrands (HBI - Free Report) reached $4.99, with a +1.01% movement compared to the previous day. This change outpaced the S&P 500's 0.04% loss on the day. Meanwhile, the Dow experienced a drop of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.12%.

Prior to today's trading, shares of the underwear, T-shirt and sock maker had lost 3.52% over the past month. This has lagged the Consumer Discretionary sector's loss of 0.13% and the S&P 500's gain of 4.15% in that time.

Analysts and investors alike will be keeping a close eye on the performance of HanesBrands in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.10, showcasing a 1100% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.35 billion, down 6.14% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.46 per share and revenue of $5.37 billion, which would represent changes of +666.67% and -4.66%, respectively, from the prior year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.74% upward. HanesBrands is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, HanesBrands is presently being traded at a Forward P/E ratio of 10.82. This represents a discount compared to its industry's average Forward P/E of 15.36.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Hanesbrands Inc. (HBI) - free report >>

Published in