#7 - Hanesbrands (NYSE:HBI)
When you think about making undergarments a sexy investment, there might be other stocks that come to mind. Hanesbrands (NYSE:HBI) may not be the brand consumers will choose for a romantic post-pandemic getaway, but the company’s products may have been practical, low-cost holiday gifts in a year when practical, low-cost gifts were on everybody’s mind. And Hanes brand products were available at retailers such as Target (NYSE:TGT) and Walmart (NYSE:WMT) which made them easy for consumers to find.
Also when you buy HBI stock you’re buying into the Champion brand. And while that may also not be a sexy brand, Esquire magazine does think that the Champion brand is pretty cool.
Investors seem to agree. After falling over 25% after a disappointing earnings report in November, HBI stock has made a strong recovery. The stock is positive year-to-date and in the last 12-month period. Although the consensus price target for the stock suggests it may be overvalued, recent price target suggest the stock has more room to grow.
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
- $7.09
- Consensus Rating
- Hold
- Ratings Breakdown
- 0 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $5.80 (18.2% Downside)
As mentioned in the introduction, now is not the time to throw in the towel on stocks. In fact, equities are going to be the place to be as the economy reopens. But that doesn’t mean you need to have your capital chasing stocks that may be overvalued.
With that said, low-priced stocks are not without risk. All of the stocks in this presentation are small-cap or mid-cap stocks. In times of market volatility, these stocks can have major price moves. Of course that can be good and bad. The point is that you should only be tapping into the speculative part of your portfolio to buy these stocks.
Investors with a lower risk tolerance may choose to come at these stocks from a different angle. There are numerous mutual funds and exchange-traded (ETF) funds that specialize in small- and mid-cap stocks. Three of the most popular mid-cap ETFs are the iShares S&P Mid-Cap 400 Growth ETF (NYSEARCA:IJK), the Vanguard S&P Mid-Cap 400 Growth ETF (NYSEARCA:IVOG), and the SPDR S&P 400 Mid Cap Growth ETF (NYSEARCA: MDYG).
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