Latest news with #HanesbrandsInc
Yahoo
23-04-2025
- Business
- Yahoo
Is Hanesbrands Inc. (HBI) the Most Undervalued Penny Stock to Buy According to Hedge Funds?
We recently published a list of the 10 Most Undervalued Penny Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Hanesbrands Inc. (NYSE:HBI) stands against other undervalued penny stocks. Earlier on March 18, Keith Fitz-Gerald, Fitz-Gerald Group CIO, joined 'Power Lunch' on CNBC to talk about how to make sense of the market and the recession versus the growth scare. Keith Fitzgerald has favored some big momentum names in recent years and is still very positive on these stocks, despite feeling frustrated by recent market action. He thinks this volatility partially comes from computers, algorithms, and equity beta. He advised the average investor to focus on fundamentals and pay attention to the insights of leaders like Jensen Huang as a way to move forward. Fitzgerald also revealed that he had been adding to all of his positions over the then-past week and planned to continue doing so, instead of joining the selloff stride. He explained that he invests with a 3, 4, or even 10-year horizon and believes that these companies are dramatically undervalued at present, even if that view is unpopular. As the conversation turned to how Fitzgerald distinguishes between stocks that have further downside and those that are poised for a turnaround, he suggested slowing down buying rather than trying to perfectly time the bottom. Fitzgerald emphasized that he is more concerned with finding a good entry point than catching the absolute lowest price. He views deeper selloffs as more attractive opportunities, and recognizes that technical factors driven by algorithms are pushing prices. Fitzgerald agreed that the persisting sources of uncertainty remain, such as the ongoing confusion around Trump's tariff policies and uncertainty in the AI sector. He noted that traders dislike uncertainty above all else because it prevents decisive actions. However, Fitzgerald remains focused on long-term trends and themes, such as AI, automation, and full-service business models. As he evaluates opportunities, he looks for where this investment will flow, which companies are most likely to benefit, and whose customers are most engaged. For Fitzgerald, the focus remains on companies with high-quality leadership, strong products, and loyal customers. We used the Finviz stock screener to compile a list of cheap penny stocks that were trading under $5 and had a forward P/E ratio under 15. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 1000 elite money managers. Note: All data was sourced on April 18. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A factory worker using modern technology to assemble a garment. Share Price as of April 18: $4.4 Forward P/E ratio as of April 18: 9.4 Number of Hedge Fund Holders: 31 Hanesbrands Inc. (NYSE:HBI) designs, manufactures, sources, and sells innerwear apparel for men, women, and children. It offers its products under the Hanes, Bali, Bonds, Maidenform, Playtex, JMS/Just My Size, Comfortwash, Hanes Beefy-T, Polo Ralph Lauren, Sheridan, Bras N Things, Wonderbra, Berlei, Zorba, Sol y Oro, and Rinbros brand names. In Q4 2024, the company's net sales in the US increased by 3% year-over-year, which was fueled by innerwear innovation. This included successful product lines like Hanes Absolute Socks, Hanes Moves, Hanes Supersoft, and Bali Breathe. Additionally, increased brand investments, effective holiday programming, and strong performance in the online channel contributed to this trajectory within the US Innerwear business. The company's consumer-centric approach drives its market share gains, retail space expansion, and attracts younger consumers. For the full year 2025, Hanesbrands Inc. (NYSE:HBI) anticipates positive organic constant currency sales growth, with the US Innerwear business expected to be a significant contributor. This growth will be supported by innovations and distribution gains in key channels. Overall, HBI ranks 7th on our list of the most undervalued penny stocks to buy according to hedge funds. While we acknowledge the growth potential of HBI, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HBI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
14-02-2025
- Business
- Yahoo
Hanesbrands Inc (HBI) Q4 2024 Earnings Call Highlights: Strong Sales and Margin Growth Amid ...
Net Sales: Increased 4.5% over prior year to $888 million. Gross Margin: Improved 400 basis points to 44.1%. Operating Margin: Expanded 300 basis points to 14.2%. Earnings Per Share (EPS): Increased 240% to $0.17. Operating Cash Flow: Generated $264 million for the year. Debt Reduction: Paid down over $1 billion of debt, reducing leverage to 3.4 times net debt to adjusted EBITDA. Fourth Quarter Sales Growth: 4% year-over-year growth. Full Year Sales Growth: 1% growth on an organic constant currency basis expected for 2025. 2025 Guidance: Operating profit expected to increase 10%, EPS to grow more than 30%, and operating cash flow to reach $350 million. Warning! GuruFocus has detected 5 Warning Signs with HBI. Release Date: February 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Hanesbrands Inc (NYSE:HBI) delivered strong results for the fourth quarter and full year 2024, with improvements across sales, margins, EPS, operating cash flow, and debt reduction. Sales trends improved each quarter, culminating in a 4% year-over-year growth in the fourth quarter. Gross margin improved by 580 basis points over the prior year to 41.4%, attributed to permanent cost savings initiatives and improved assortment management. The company paid down over $1 billion of debt, reducing leverage by nearly two turns. Hanesbrands Inc (NYSE:HBI) expects to generate consistent top-line growth, expand margins to over 15%, and generate more than $400 million a year of operating cash flow in the future. The reclassification of the Champion Japan business to discontinued operations has made fourth quarter and full year results not directly comparable to previous guidance or current consensus estimates. The consumer environment remains challenging, which could impact sales growth. There is a potential risk related to macroeconomic conditions, consumer demand dynamics, and the inflationary environment. The company is undergoing a leadership transition, which could introduce uncertainty during the search for a new CEO. Despite improvements, the company still faces challenges in certain international markets, such as Australia, where inflation remains sticky and GDP growth is low. Q: Can you talk about the degree of confidence in the company's ability to drive positive sales in '25 and the visibility into future margin expansion? A: Stephen Bratspies, CEO, expressed confidence in achieving 1% organic constant currency growth for 2025, citing momentum from Q4, innovation, brand investment, and permanent retail space gains. M. Scott Lewis, CFO, highlighted a 125 basis point expected increase in operating margins, driven by cost savings, SKU mix, and SG&A reductions, with no additional brand spend headwinds anticipated. Q: Could you discuss your decision to step down as CEO and whether this was always part of your plan? A: Stephen Bratspies, CEO, explained that the decision was made from a position of strength, with the company having a strong foundation and clear long-range plan. The Board and he are aligned on succession, and he remains fully engaged in leading the company through 2025 while assisting in identifying his successor. Q: How far are you on eliminating the stranded costs associated with Champion, and how much runway is left? A: M. Scott Lewis, CFO, stated that the company is focused on eliminating stranded costs and has accelerated cost reduction actions. The process is expected to be essentially complete in 2025, contributing significantly to the 125 basis point margin expansion. Q: Can you break down the guidance for 2025 in terms of the US versus international business, and discuss any changes in ordering patterns? A: Stephen Bratspies, CEO, indicated that US sales are expected to be flat, while international sales are projected to grow in the low single digits on a constant currency basis. No major shifts in ordering patterns are anticipated, and the company is well-positioned with retail partners. Q: Could you talk about the opportunity in the Printwear business and its contribution to the 2025 growth outlook? A: Stephen Bratspies, CEO, noted that while Printwear is not a large part of the business, it is seen as highly incremental. The company is focusing on this area with new leadership and innovation, such as the 50th anniversary of the Beefy-T, which is expected to contribute to growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
29-01-2025
- Business
- Yahoo
Is Now The Time To Look At Buying Hanesbrands Inc. (NYSE:HBI)?
While Hanesbrands Inc. (NYSE:HBI) might not have the largest market cap around , it led the NYSE gainers with a relatively large price hike in the past couple of weeks. The recent share price gains has brought the company back closer to its yearly peak. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on Hanesbrands's outlook and valuation to see if the opportunity still exists. Check out our latest analysis for Hanesbrands According to our valuation model, Hanesbrands seems to be fairly priced at around 7.37% above our intrinsic value, which means if you buy Hanesbrands today, you'd be paying a relatively fair price for it. And if you believe that the stock is really worth $7.75, there's only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Hanesbrands's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. However, with an extreme expected decline in the top-line over the next couple of years, near-term growth is certainly not a driver of a buy decision. Even with a larger decline in expenses, it seems like high uncertainty is on the cards for Hanesbrands. Are you a shareholder? Currently, HBI appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on HBI for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there's less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven't considered today, which can help crystalize your views on HBI should the price fluctuate below its true value. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. At Simply Wall St, we found 1 warning sign for Hanesbrands and we think they deserve your attention. If you are no longer interested in Hanesbrands, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
