In-Depth Examination Of 4 Analyst Recommendations For Hanesbrands

In the last three months, 4 analysts have published ratings on Hanesbrands HBI, offering a diverse range of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $5.88, with a high estimate of $6.50 and a low estimate of $5.00. This current average reflects an increase of 20.49% from the previous average price target of $4.88.

Investigating Analyst Ratings: An Elaborate Study

A clear picture of Hanesbrands's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Hanesbrands. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Hanesbrands compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Hanesbrands's stock. This analysis reveals shifts in analysts' expectations over time.

To gain a panoramic view of Hanesbrands's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Hanesbrands analyst ratings.

Discovering Hanesbrands: A Closer Look

Hanesbrands manufactures basic and athletic apparel under brands including Hanes, Playtex, Maidenform, Bali, Berlei, and Bonds. The company sells wholesale to discount, midmarket, and department store retailers as well as direct to consumers through stores and e-commerce. Hanesbrands is vertically integrated as it produces more than 70% of its products in company-controlled factories in more than three dozen nations. Hanesbrands distributes products in the Americas and Asia-Pacific. The company was founded in 1901 and is based in Winston-Salem, North Carolina.

Key Indicators: Hanesbrands's Financial Health

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Decline in Revenue: Over the 3 months period, Hanesbrands faced challenges, resulting in a decline of approximately -3.83% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Hanesbrands's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -29.98%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Hanesbrands's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -148.24%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -5.44%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Hanesbrands's debt-to-equity ratio stands notably higher than the industry average, reaching 55.14. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

What Are Analyst Ratings?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.