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Are Investors Undervaluing Hanesbrands (HBI) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Hanesbrands (HBI - Free Report) is a stock many investors are watching right now. HBI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.64 right now. For comparison, its industry sports an average P/E of 13.10. HBI's Forward P/E has been as high as 37.17 and as low as 5.89, with a median of 8.18, all within the past year.
Investors should also recognize that HBI has a P/B ratio of 4.97. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.99. Over the past year, HBI's P/B has been as high as 5.97 and as low as 3.31, with a median of 4.82.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HBI has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.65.
Finally, investors will want to recognize that HBI has a P/CF ratio of 18.10. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 25.87. Within the past 12 months, HBI's P/CF has been as high as 21.74 and as low as -9.81, with a median of -3.46.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Hanesbrands is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HBI feels like a great value stock at the moment.
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Are Investors Undervaluing Hanesbrands (HBI) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Hanesbrands (HBI - Free Report) is a stock many investors are watching right now. HBI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.64 right now. For comparison, its industry sports an average P/E of 13.10. HBI's Forward P/E has been as high as 37.17 and as low as 5.89, with a median of 8.18, all within the past year.
Investors should also recognize that HBI has a P/B ratio of 4.97. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.99. Over the past year, HBI's P/B has been as high as 5.97 and as low as 3.31, with a median of 4.82.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HBI has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.65.
Finally, investors will want to recognize that HBI has a P/CF ratio of 18.10. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 25.87. Within the past 12 months, HBI's P/CF has been as high as 21.74 and as low as -9.81, with a median of -3.46.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Hanesbrands is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HBI feels like a great value stock at the moment.