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HanesBrands (HBI) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest market close, HanesBrands (HBI - Free Report) reached $6.02, with a -1.95% movement compared to the previous day. This change lagged the S&P 500's 0.08% gain on the day. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq added 0.07%.

Coming into today, shares of the underwear, T-shirt and sock maker had gained 24.54% in the past month. In that same time, the Consumer Discretionary sector lost 1.74%, while the S&P 500 lost 0.21%.

The investment community will be closely monitoring the performance of HanesBrands in its forthcoming earnings report. The company is scheduled to release its earnings on August 8, 2024. The company's upcoming EPS is projected at $0.10, signifying a 1100% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.35 billion, indicating a 6.14% decrease compared to the same quarter of the previous 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 take note of any recent adjustments to analyst estimates for HanesBrands. These revisions help to show the ever-changing nature of 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, HanesBrands is carrying a Zacks Rank of #1 (Strong Buy).

In terms of valuation, HanesBrands is presently being traded at a Forward P/E ratio of 13.44. This valuation marks a discount compared to its industry's average Forward P/E of 14.16.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 38% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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