#1 - Hanes Brands (NYSE:HBI)
Hanes Brands (HBI) - It hasn’t been easy to be an investor in Hanesbrands (NYSE:HBI) stock. While the broader market was surging, HBI stock has fallen approximately 70% in the last five years. And the company is facing some headwinds with a change in leadership, softening sales even before the Covid-19 pandemic broke out, and a contract with Amazon (NASDAQ:AMZN) that increases the competitive field.
Add to that, the company delivered a disappointing earnings report which took a little shine off the stock that had been recovering. But there is reason for hope.
Hanesbrands will at least have a pulse of revenue in the second quarter. But the company is still reducing capital spending to address critical needs exclusively. However, they will still sell its Champion and Hanes brands online.
But the vast majority of its production capacity at this time is going to helping address the PPE shortage. The company has pledged to produce over 20 million medical gowns and over 320 million face coverings. The company is ahead of schedule on its face covering production. And the company is also preparing to add capacity to meet the demand for face coverings that will go to consumers, retailers and other business owners who are attempting to re-open their businesses.
On the other side of the Covid-19 pandemic, the company is planning a major push into athleisure wear which may give the company a competitive advantage on the Amazon platform. The company currently has an attractive P/E ratio of 6.73 and a quarterly dividend which the company just paid in March.
About Hanesbrands
Hanesbrands Inc, a consumer goods company, designs, manufactures, sources, and sells a range of range of innerwear apparels for men, women, and children in the Americas, Europe, the Asia pacific, and internationally. The company operates through three segments: Innerwear, Activewear, and International.
Read More - Current Price
- $8.23
- Consensus Rating
- Hold
- Ratings Breakdown
- 1 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $6.90 (16.2% Downside)
