In the latest trading session, HanesBrands (HBI) closed at $17.58, marking a -0.23% move from the previous day. This change lagged the S&P 500's daily gain of 0.35%. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq added 0.37%.
Prior to today's trading, shares of the underwear, T-shirt and sock maker had gained 13.09% over the past month. This has outpaced the Consumer Discretionary sector's gain of 1.42% and the S&P 500's gain of 4.32% in that time.
Investors will be hoping for strength from HBI as it approaches its next earnings release, which is expected to be November 5, 2020. In that report, analysts expect HBI to post earnings of $0.36 per share. This would mark 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.
HBI's full-year Zacks Consensus Estimates are calling for earnings of $1.45 per share and revenue of $6.32 billion. These results would represent year-over-year changes of -17.61% and -9.35%, respectively.
Investors might also notice recent changes to analyst estimates for HBI. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 a Zacks Rank #1 (Strong Buy).
In terms of valuation, HBI is currently trading at a Forward P/E ratio of 12.19. Its industry sports an average Forward P/E of 47.31, so we one might conclude that HBI is trading at a discount comparatively.
It is also worth noting that HBI currently has a PEG ratio of 3.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Textile - Apparel stocks are, on average, holding a PEG ratio of 6.3 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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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