Dividend Darling & Upside Potential For Hanesbrands Inc. (NYSE:HBI)

If investors are looking for a stable dividend stock with upside, Hanesbrands Inc. (NYSE:HBI) could be one that fits the bill.  The stock currently provides a dividend yield of 3.56% for the Consumer Goods company.  Sell-side analysts covering the shares are projecting that it will reach $19.21 within the next 12-18 months.  This is a solid upside to a recent tick of $16.85.  On a consensus basis, analysts have a Buy/Sell rating of 2.60, which is based on a 1 to 5 scale where 1 represents a Strong Buy and 5 a Strong Sell. Individual investors may be going to great lengths to make their hard earned money work for them in the stock market. The stock market can be a scary place for beginners with little to no experience. Studying the ins and outs of the markets can help provide a solid base for the new investor to work with. Many people will jump into the game thinking they are going to easily make large profits in the market. Although this is a possibility, many investors will learn the hard way that sustaining profits over the long-term can be a tough endeavor. Studying all the different company information can take up a lot of time and energy. Some people just don’t have the time they would like to put into stock market study. 

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, Hanesbrands Inc. (NYSE:HBI)’s stock was 34.48%.  Over the last week of the month, it was 3.12%, -4.53% over the last quarter, and  22.10% for the past six months.

Over the past 50 days, Hanesbrands Inc. stock’s -11.78% off of the high and 15.41% removed from the low.  Their 52-Week High and Low are noted here.  -25.34% (High), 45.64%, (Low). 

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  Hanesbrands Inc.’s EPS for the trailing 12 months is 1.50.  Their EPS should be compared to other companies in the Consumer Goods sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  Hanesbrands Inc.’s  P/E ratio is 11.23. 

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  Hanesbrands Inc.’s  PEG is 4.33.

TECHNICAL ANALYSIS

Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward.  Analysts use common formulas and ratios to accomplish this.

Hanesbrands Inc. (NYSE:HBI)’s RSI (Relative Strength Index) is 55.07.  RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.

Investors are constantly striving to get on top in the stock market. Everyone wants to find that next winner to jumpstart the portfolio. Investors often identify risk preference when trying to sort out asset allocation. Typically, a greater amount of risk may provide a greater chance for growth. Many investors may struggle with the concept of keeping emotion out of choosing stocks. Equity research often requires a high degree of patience, dedication, and practice. Learning everything possible about the markets can help the individual build a good base to work with. Being able to sort out the data to determine what is relevant information can help with those tough investment decisions.