Yahoo Finance Is Hanesbrands (HBI) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Hanesbrands (HBI) is a stock many investors are watching right now. HBI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 9.32. This compares to its industry's average Forward P/E of 12.02. Over the last 12 months, HBI's Forward P/E has been as high as 37.17 and as low as 5.89, with a median of 8.06.
We should also highlight that HBI has a P/B ratio of 5.16. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.43. Within the past 52 weeks, HBI's P/B has been as high as 5.97 and as low as 3.31, with a median of 4.77.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HBI has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.7.
Value investors will likely look at more than just these metrics, but the above data helps show that Hanesbrands is likely undervalued currently. And when considering the strength of its earnings outlook, HBI sticks out at as one of the market's strongest value stocks.
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Hanesbrands Inc. (HBI) : Free Stock Analysis Report
