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HanesBrands (HBI) Flat As Market Sinks: What You Should Know

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The latest trading session saw HanesBrands (HBI - Free Report) ending at $5.36, denoting no adjustment from its last day's close. This change was narrower than the S&P 500's daily loss of 2.32%. Meanwhile, the Dow lost 1.25%, and the Nasdaq, a tech-heavy index, lost 3.64%.

Prior to today's trading, shares of the underwear, T-shirt and sock maker had gained 8.28% over the past month. This has outpaced the Consumer Discretionary sector's loss of 1.65% and the S&P 500's gain of 1.79% in that time.

The investment community will be paying close attention to the earnings performance of HanesBrands in its upcoming release. The company is forecasted to report an EPS of $0.10, showcasing a 1100% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.35 billion, reflecting a 6.14% fall from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.46 per share and a revenue of $5.37 billion, indicating changes of +666.67% and -4.66%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for HanesBrands. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 remained steady. Currently, HanesBrands is carrying a Zacks Rank of #1 (Strong Buy).

Investors should also note HanesBrands's current valuation metrics, including its Forward P/E ratio of 11.74. For comparison, its industry has an average Forward P/E of 14, which means HanesBrands is trading at a discount to the group.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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