Why buying the Hanesbrands Inc. (NYSE:HBI) Stock Today Might Make Sense

Hanesbrands Inc. (NYSE:HBI) traded at $14.44 at close of the session on Tuesday, Dec 29, made a downturn move of -1.16% on its previous day’s price.

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Looking at the stock we see that its previous close was $14.61 and the beta (5Y monthly) reads 1.4 with the day’s price range being $14.35 – 14.70. The company has a trailing 12-month PE ratio of 11.82. In terms of its 52-week price range, HBI has a high of $17.74 and a low of $6.96. The company’s stock has gained about 0.07% over that past 30 days.

Hanesbrands Inc. has a market cap of $5.08 Billion and is expected to release its quarterly earnings report on Feb 05, 2021- Feb 09, 2021. With its Forward Dividend at 0.6 and a yield of 4.16%, the company’s investors could be anxious for the HBI stock to gain ahead of the earnings release. Estimates by analysts give the company expected earnings per share (EPS) of $0.3, with the EPS growth for the year declined at $1.37 for 2020 and $1.53 for next year. These figures represent -0.22% and 0.12% growth in EPS for the two years respectively.

Analysts tracking the company’s growth have also given it a consensus growth in revenue estimated at $1.64 Billion, with a low of $1.6 Billion and a high of $1.67 Billion. The median projection represents growth adding up to -6.4% compared to sales growth for the corresponding quarter a year ago. According to analyst consensus estimates figures, the company’s yearly revenue forecast for 2020 is expected to hit $6.48 Billion, or -6.9% down from figures reported last year.

On the other hand, looking at the outlook for the HBI stock, short term indicators assign the stock an average of Hold, while medium term indicators assign it an average of Hold. Long term indicators on average place the stock in the category of 50% Buy.

Based on estimates by 15 analysts, where scores have ranged from 1.00 for a strong buy to 5.00 for a strong sell, 6 have rated the Hanesbrands Inc. (HBI) stock as a Hold, while 6 rate it as a Buy. 1 analyst(s) rate it as outperform while none of them rated it as underperform, whereas 2 suggest the stock as a Sell. The stock has an overall rating of Overweight and investors could take advantage and scoop up stock of the company.

Looking further, we note that the PEG ratio for the HBI stock currently stands at 12.71, and the current price level is 1.74% off its SMA20 and -2% from its 50-day simple moving average. The RSI (14) is pointing at 51.64 while the volatility over the past week is 3.42% and drops to 3.03% over the past one month. The beta value is 1.4, while the average true range (ATR) is currently pointing at 0.45. The average price target for the stock over the next 12 months is $15.07, with the estimates having a low of $5 and a high of $20. These price ends are -65.37% and +38.5% off the current price level respectively, although investors could be excited at the prospect of a +10.8% if the HBI share price touches on the median price of $16.

Let’s briefly compare Hanesbrands Inc. (HBI) stock to its peers. We find that current price change of -1.16% and -2.04% over the past 12 months for HBI competes that of Lululemon Athletica (LULU), which has seen its stock price rise 0.53% in the last trading session and was +53.02% over the last one year. Another of its peers V.F. Corp (VFC) has dropped -0.81% previous session, but was -14.87% down over the past year, while Under Armour (UAA) was also down -1.16% in the last session, while its price remained in the red at -2.04% over the same period. Hanesbrands Inc. has a P/E ratio of 11.82 compared to Lululemon Athletica’s 82.99 and V.F. Corp’s 0. In contrast to these companies, both the S&P 500 Index and the Dow Jones Industrial were at -0.22% and -0.22%, respectively, at close of the trading.

Coming back to Hanesbrands Inc. (NYSE:HBI), we note that the average 3-month trading volume was 5.55 Million, while that of the preceding 10-day period stands at 4.94 Million. Current shares outstanding are 348.32 Million.

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According to data from Thomson Reuters, insiders hold 1.25% of the company’s shares while institutions hold 95.15%. The data shows that short shares as of December 14, 2020, stood at 28.1 Million at a short ratio of 5.57. This represents a 8.07% short interest in shares outstanding on December 14, 2020. Shares short dropped in December from the previous month at 28.28 Million. Investors should be worried about this stock as its upside potential is weak, with current price pushing the stock -2.76% down in year-to-date price movement.

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