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Gildan Stock Trades Near 52-Week High: Is It Worth Your Investment?
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Shares of Gildan Activewear Inc. (GIL - Free Report) have been on a strong upward trajectory, hovering near its 52-week high of $50.60, achieved on Monday. This surge in stock price is a reflection of the company's exceptional performance, fueled by the successful execution of its three strategic pillars: capacity expansion, innovation, and environmental, social and governance (ESG) initiatives.
The recent rally follows Gildan’s impressive third-quarter fiscal 2024 earnings report on Oct. 31, when the company last hit this 52-week high. The strong earnings announcement, which exceeded market expectations, helped propel the stock to new levels.
GIL has seen a remarkable 34.9% rise in the past six months, outpacing the industry's growth of 12.9% during the same period. Gildan's success is driven by its Sustainable Growth Strategy (GSG), which is propelling growth, enhancing consumer engagement and expanding market share. These efforts have allowed Gildan to outperform the broader S&P 500 index, which increased by 14.1%, and the broader sector, which grew by 18.1% over the same timeframe.
GIL Stock Past Six-Month Performance
Image Source: Zacks Investment Research
Technical indicators are also supportive of Gildan’s strong performance. The stock is trading above its 50-day and 200-day moving averages, indicating robust upward momentum and price stability. This moving average is an important indicator for gauging market trends and momentum.
GIL Trading Above 50 and 200-Day Moving Averages
Image Source: Zacks Investment Research
Evaluating GIL Stock's Surge to a 52-Week High
Gildan surged to its highest level of the year following its impressive third-quarter fiscal 2024 results, coupled with an upgraded full-year outlook. The company recorded third-quarter sales of $891 million, a 2.4% increase year over year. This strong performance highlights Gildan’s unwavering focus on strengthening its competitive position and driving profitable growth.
The third-quarter results highlighted mid-single-digit sales growth in Activewear, reflecting market share gains in key growth categories and a strong response to newly introduced products featuring soft cotton technology. International markets saw a 20% sales increase, driven by robust point-of-sale performance in Europe, the largest market and inventory replenishment by distributors from suboptimal levels. The continued ramp up of the Bangladesh facility has further enhanced Gildan’s ability to meet growing demand in these regions.
The company also witnessed a gross margin improvement, rising to 31.2% from 27.5% in the prior year, reflecting a 370 basis point increase. This was driven by lower raw material and manufacturing input costs, which were in line with Gildan's expectations.
In light of robust third-quarter results, Gildan has exciting opportunities ahead. The company continues to leverage the benefits of its ongoing yarn operation modernization in the United States and further scaling up with its new Bangladesh operation, which is ramping up as planned and will support the long-term growth of its ring-spun products. On the innovation front, the new products are receiving positive feedback.
Estimates for GIL Stock: What’s on the Horizon?
Reflecting the positive sentiment around Gildan, the Zacks Consensus Estimate for earnings per share has seen upward revisions. Over the past 60 days, analysts have increased their estimates for the current and next fiscal year by 1.7% to $2.97 and by 2.7% to $3.38 per share, respectively. These estimates indicate expected year-over-year growth rates of around 15.6% and 13.8%, respectively.
Image Source: Zacks Investment Research
Final Thoughts on GIL Stock
Investors should consider Gildan stock due to its strong performance in the third quarter, led by strategic growth initiatives and operational efficiencies. With a proven track record of strong sales growth, margin improvements and a focus on sustainable growth, Gildan presents a compelling investment opportunity. The Zacks Rank #2 (Buy) stock is performing strongly in the market, indicating significant potential for continued appreciation.
Three Stocks to Consider
Some other top-ranked stocks are Wolverine World Wide (WWW - Free Report) , Ralph Lauren Corporation (RL - Free Report) and Kontoor Brands, Inc. (KTB - Free Report) .
Wolverine World Wide designs, manufactures and distributes a wide variety of casual and active apparel and footwear. The company sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WWW’s current financial-year sales indicates a decline of almost 23% from the year-ago reported figures. The consensus mark for EPS reflects significant growth to 89 cents from 5 cents reported in the prior year. WWW has a trailing four-quarter earnings surprise of 17.03%, on average.
Ralph Lauren designs, markets and distributes lifestyle products in North America, Europe, Asia and internationally. It currently carries a Zacks Rank #2.
RL has a trailing four-quarter earnings surprise of 9.1%, on average. The consensus estimate for Ralph Lauren’s current financial year sales and earnings indicates advancements of 3.5% and 13.6%, respectively, from the prior-year figures.
Kontoor Brands is a lifestyle apparel company that designs, produces, procures, markets, distributes and licenses denim, apparel, footwear and accessories, primarily under the Wrangler and Lee brands. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Kontoor Brands’ current fiscal year earnings indicates growth of 13.2% from the year-ago actuals. KTB has a trailing four-quarter average earnings surprise of 12.8%.
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Gildan Stock Trades Near 52-Week High: Is It Worth Your Investment?
Shares of Gildan Activewear Inc. (GIL - Free Report) have been on a strong upward trajectory, hovering near its 52-week high of $50.60, achieved on Monday. This surge in stock price is a reflection of the company's exceptional performance, fueled by the successful execution of its three strategic pillars: capacity expansion, innovation, and environmental, social and governance (ESG) initiatives.
The recent rally follows Gildan’s impressive third-quarter fiscal 2024 earnings report on Oct. 31, when the company last hit this 52-week high. The strong earnings announcement, which exceeded market expectations, helped propel the stock to new levels.
GIL has seen a remarkable 34.9% rise in the past six months, outpacing the industry's growth of 12.9% during the same period. Gildan's success is driven by its Sustainable Growth Strategy (GSG), which is propelling growth, enhancing consumer engagement and expanding market share. These efforts have allowed Gildan to outperform the broader S&P 500 index, which increased by 14.1%, and the broader sector, which grew by 18.1% over the same timeframe.
GIL Stock Past Six-Month Performance
Image Source: Zacks Investment Research
Technical indicators are also supportive of Gildan’s strong performance. The stock is trading above its 50-day and 200-day moving averages, indicating robust upward momentum and price stability. This moving average is an important indicator for gauging market trends and momentum.
GIL Trading Above 50 and 200-Day Moving Averages
Image Source: Zacks Investment Research
Evaluating GIL Stock's Surge to a 52-Week High
Gildan surged to its highest level of the year following its impressive third-quarter fiscal 2024 results, coupled with an upgraded full-year outlook. The company recorded third-quarter sales of $891 million, a 2.4% increase year over year. This strong performance highlights Gildan’s unwavering focus on strengthening its competitive position and driving profitable growth.
The third-quarter results highlighted mid-single-digit sales growth in Activewear, reflecting market share gains in key growth categories and a strong response to newly introduced products featuring soft cotton technology. International markets saw a 20% sales increase, driven by robust point-of-sale performance in Europe, the largest market and inventory replenishment by distributors from suboptimal levels. The continued ramp up of the Bangladesh facility has further enhanced Gildan’s ability to meet growing demand in these regions.
The company also witnessed a gross margin improvement, rising to 31.2% from 27.5% in the prior year, reflecting a 370 basis point increase. This was driven by lower raw material and manufacturing input costs, which were in line with Gildan's expectations.
In light of robust third-quarter results, Gildan has exciting opportunities ahead. The company continues to leverage the benefits of its ongoing yarn operation modernization in the United States and further scaling up with its new Bangladesh operation, which is ramping up as planned and will support the long-term growth of its ring-spun products. On the innovation front, the new products are receiving positive feedback.
Estimates for GIL Stock: What’s on the Horizon?
Reflecting the positive sentiment around Gildan, the Zacks Consensus Estimate for earnings per share has seen upward revisions. Over the past 60 days, analysts have increased their estimates for the current and next fiscal year by 1.7% to $2.97 and by 2.7% to $3.38 per share, respectively. These estimates indicate expected year-over-year growth rates of around 15.6% and 13.8%, respectively.
Image Source: Zacks Investment Research
Final Thoughts on GIL Stock
Investors should consider Gildan stock due to its strong performance in the third quarter, led by strategic growth initiatives and operational efficiencies. With a proven track record of strong sales growth, margin improvements and a focus on sustainable growth, Gildan presents a compelling investment opportunity. The Zacks Rank #2 (Buy) stock is performing strongly in the market, indicating significant potential for continued appreciation.
Three Stocks to Consider
Some other top-ranked stocks are Wolverine World Wide (WWW - Free Report) , Ralph Lauren Corporation (RL - Free Report) and Kontoor Brands, Inc. (KTB - Free Report) .
Wolverine World Wide designs, manufactures and distributes a wide variety of casual and active apparel and footwear. The company sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WWW’s current financial-year sales indicates a decline of almost 23% from the year-ago reported figures. The consensus mark for EPS reflects significant growth to 89 cents from 5 cents reported in the prior year. WWW has a trailing four-quarter earnings surprise of 17.03%, on average.
Ralph Lauren designs, markets and distributes lifestyle products in North America, Europe, Asia and internationally. It currently carries a Zacks Rank #2.
RL has a trailing four-quarter earnings surprise of 9.1%, on average. The consensus estimate for Ralph Lauren’s current financial year sales and earnings indicates advancements of 3.5% and 13.6%, respectively, from the prior-year figures.
Kontoor Brands is a lifestyle apparel company that designs, produces, procures, markets, distributes and licenses denim, apparel, footwear and accessories, primarily under the Wrangler and Lee brands. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Kontoor Brands’ current fiscal year earnings indicates growth of 13.2% from the year-ago actuals. KTB has a trailing four-quarter average earnings surprise of 12.8%.