HanesBrands Faces Mixed Market Trends and Upcoming Earnings Release
HanesBrands (HBI) concluded the last trading day at $7.08, down 1.39% from the previous close. This performance lagged behind the S&P 500, which experienced a minor loss of 0.05%. Conversely, the Dow decreased by 0.02%, while the Nasdaq saw a rise of 0.18%.
In the month leading up to today, shares of the apparel manufacturer have increased by 7.16%. This growth exceeds the Consumer Discretionary sector’s gain of 3.25% and the S&P 500’s increase of 2.76% during the same timeframe.
Investors Anticipate Upcoming Earnings Report
HanesBrands is set to release its earnings report soon, which is generating considerable interest among investors. Analysts predict the company’s earnings per share (EPS) will reach $0.11, representing a 10% rise from the same quarter last year. However, revenue estimates indicate a potential drop to $928.3 million, reflecting a decrease of 38.58% compared to last year.
For the full year, the Zacks Consensus Estimates foresee earnings of $0.34 per share and revenue of $3.6 billion, highlighting significant shifts of +466.67% for earnings and -36.13% for revenue compared to the previous year.
Analyst Revisions Provide Insights
Investors should pay attention to any recent changes in analyst estimates for HanesBrands. These revisions reveal shifts in the business landscape. Upward adjustements tend to reflect analysts’ confidence in a company’s operations and profit generation.
Research shows a strong link between these revisions and future stock price movements. To assist investors, we utilize the Zacks Rank, a proprietary system that incorporates these estimate changes for a more strategic rating of stocks.
The Zacks Rank, ranging from #1 (Strong Buy) to #5 (Strong Sell), shows a solid historical track record. Since 1988, #1 stocks have averaged an annual return of +25%. However, over the past month, HanesBrands’ Zacks Consensus EPS estimate has decreased by 2.86%, and the stock currently holds a Zacks Rank of #4 (Sell).
Valuation Metrics Under Examination
At present, HanesBrands trades at a Forward P/E ratio of 21.12, which positions it at a premium relative to its industry’s average Forward P/E of 20.15. The Textile – Apparel industry, a segment of the Consumer Discretionary sector, currently ranks 171 in the Zacks Industry Rankings, placing it in the bottom 33% of over 250 industries. Sectors with higher rankings historically outperform lower-ranked industries.
To make informed decisions, consider following Zacks.com for critical metrics that could influence stock movements in the trading days ahead.
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Hanesbrands Inc. (HBI): Free Stock Analysis Report
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