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Gildan Activewear, Inc. (GIL) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Gildan Activewear (GIL - Free Report) ? Shares have been on the move with the stock up 4.6% over the past month. The stock hit a new 52-week high of $49.64 in the previous session. Gildan Activewear has gained 47.9% since the start of the year compared to the 5.5% move for the Zacks Consumer Discretionary sector and the -18.4% return for the Zacks Textile - Apparel industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 31, 2024, Gildan reported EPS of $0.85 versus consensus estimate of $0.84.
For the current fiscal year, Gildan is expected to post earnings of $2.93 per share on $3.24 billion in revenues. This represents a 14.01% change in EPS on a 1.46% change in revenues. For the next fiscal year, the company is expected to earn $3.32 per share on $3.39 billion in revenues. This represents a year-over-year change of 13.23% and 4.63%, respectively.
Valuation Metrics
Gildan may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Gildan has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20X. On a trailing cash flow basis, the stock currently trades at 14.5X versus its peer group's average of 8.5X. Additionally, the stock has a PEG ratio of 1.85. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Gildan currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Gildan meets the list of requirements. Thus, it seems as though Gildan shares could have potential in the weeks and months to come.
How Does GIL Stack Up to the Competition?
Shares of GIL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is G-III Apparel Group, LTD. (GIII - Free Report) . GIII has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of F.
Earnings were strong last quarter. G-III Apparel Group, LTD. beat our consensus estimate by 85.71%, and for the current fiscal year, GIII is expected to post earnings of $4.01 per share on revenue of $3.2 billion.
Shares of G-III Apparel Group, LTD. have gained 6.3% over the past month, and currently trade at a forward P/E of 7.55X and a P/CF of 6.37X.
The Textile - Apparel industry may rank in the bottom 65% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for GIL and GIII, even beyond their own solid fundamental situation.
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Gildan Activewear, Inc. (GIL) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Gildan Activewear (GIL - Free Report) ? Shares have been on the move with the stock up 4.6% over the past month. The stock hit a new 52-week high of $49.64 in the previous session. Gildan Activewear has gained 47.9% since the start of the year compared to the 5.5% move for the Zacks Consumer Discretionary sector and the -18.4% return for the Zacks Textile - Apparel industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 31, 2024, Gildan reported EPS of $0.85 versus consensus estimate of $0.84.
For the current fiscal year, Gildan is expected to post earnings of $2.93 per share on $3.24 billion in revenues. This represents a 14.01% change in EPS on a 1.46% change in revenues. For the next fiscal year, the company is expected to earn $3.32 per share on $3.39 billion in revenues. This represents a year-over-year change of 13.23% and 4.63%, respectively.
Valuation Metrics
Gildan may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Gildan has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20X. On a trailing cash flow basis, the stock currently trades at 14.5X versus its peer group's average of 8.5X. Additionally, the stock has a PEG ratio of 1.85. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Gildan currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Gildan meets the list of requirements. Thus, it seems as though Gildan shares could have potential in the weeks and months to come.
How Does GIL Stack Up to the Competition?
Shares of GIL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is G-III Apparel Group, LTD. (GIII - Free Report) . GIII has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of F.
Earnings were strong last quarter. G-III Apparel Group, LTD. beat our consensus estimate by 85.71%, and for the current fiscal year, GIII is expected to post earnings of $4.01 per share on revenue of $3.2 billion.
Shares of G-III Apparel Group, LTD. have gained 6.3% over the past month, and currently trade at a forward P/E of 7.55X and a P/CF of 6.37X.
The Textile - Apparel industry may rank in the bottom 65% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for GIL and GIII, even beyond their own solid fundamental situation.