Last Updated: 08 Nov 2024
Executive Summary
Hanesbrands Inc. (HBI) is a leading global marketer of basic apparel. The company's products include underwear, socks, hosiery, and activewear. HBI has a strong brand portfolio, including Hanes, Champion, Playtex, and Bali. The company's shares have underperformed the market in recent years, but the stock is now trading at a discount to its peers. We believe that HBI is a good value at current levels and recommend investors consider buying the stock.
Company Overview
HBI was founded in 1901 and is headquartered in Winston-Salem, North Carolina. The company has a global workforce of over 60,000 employees and sells its products in over 100 countries. HBI's products are sold through a variety of channels, including mass merchants, department stores, and specialty retailers.
Fundamental Analysis
HBI's financial performance has been mixed in recent years. The company's revenue has declined in each of the past three years, and its earnings per share have been negative in each of the past two years. However, HBI's gross margin and operating margin have improved in recent quarters, and the company's balance sheet is strong.
Technical Analysis
HBI's stock price has been trading in a range between $3.58 and $8.70 over the past 52 weeks. The stock is currently trading near the bottom of this range. The stock's 50-day moving average is $6.93, and its 200-day moving average is $5.58. The stock's relative strength index (RSI) is 30, which indicates that the stock is oversold.
Short Term Outlook
We believe that HBI's stock is undervalued at current levels. The stock is trading at a discount to its peers, and the company's fundamentals are improving. We expect HBI's stock price to rise in the short term as the market recognizes the company's value.
Long Term Outlook
We believe that HBI has a bright long-term future. The company has a strong brand portfolio, a global presence, and a solid financial foundation. We expect HBI to continue to grow its revenue and earnings in the years to come.
Analyst Recommendations
We recommend that investors buy HBI stock. The stock is undervalued, and the company has a strong long-term outlook.
