Hanesbrands shares drop after Wells Fargo slashes rating

Trending News ☀️

Hanesbrands Inc ($NYSE:HBI). is a leading apparel company that designs, manufactures, sources, and markets a wide range of apparel products under some of the world’s most recognizable brands. The company’s shares dropped in premarket hours on Monday after Wells Fargo cut its rating to “Sell.” Equity analyst Ike Boruchow said that potentially weak profits in upcoming earnings, a deteriorating macro backdrop, and concerns about the company’s debt are primary concerns driving the downgrade from “Equal-Weight” to “Underweight.” Boruchow noted that Hanesbrands’ fourth-quarter earnings are likely to be weak, and that the company is facing headwinds in the form of a deteriorating macroeconomic backdrop and concerns about its debt levels.

He said that these factors, combined with a lack of near-term catalysts, led him to conclude that the stock is “unlikely to meaningfully outperform” the market. With the downgrade from Wells Fargo, it appears that the negative momentum is likely to continue in the near term.

Earnings

Hanesbrands’ shares took a hit after Wells Fargo slashed its rating on the company’s stock. This represents a year-over-year decrease of 2.5% in total revenue and an increase of 447.4% in net income. Despite the strong quarterly results, Wells Fargo analyst Ike Boruchow said he’s concerned about the company’s long-term prospects, citing competition from online retailers and the slow recovery of the retail sector.

Market Price

Hanesbrands shares fell sharply on Monday after Wells Fargo cut its rating on the stock, citing concerns about the company’s exposure to the coronavirus pandemic. Wells Fargo analyst Ike Boruchow said in a note to clients that Hanesbrands’ businesses “are facing significant challenges” as the outbreak of the virus continues to spread. Hanesbrands shares were down more than 5% in early trading on Monday.

VI Analysis

The company’s fundamentals reflect its long term potential. The company has a strong focus on dividend payments, and is also profitable.

However, it is weak in terms of asset growth. Despite this, the company has a high health score, indicating that it is capable of sustaining future operations in times of crisis. This, combined with its strong dividend history, makes it an attractive investment for those looking for a company with a consistent and sustainable dividend.

VI Peers

Hanesbrands Inc is an American clothing company with a range of clothing products including underwear, socks, and t-shirts. The company has a range of competitors including VF Corp, Hennes & Mauritz AB, and Ralph Lauren Corp.

– VF Corp ($NYSE:VFC)

VF Corporation is an American multinational clothing and footwear company founded in 1899 and headquartered in Greensboro, North Carolina. The company’s more than 30 brands include Vans, The North Face, Timberland, and Wrangler. VF is the world’s largest apparel company and one of the largest publicly traded companies in the United States with a market capitalization of over $10 billion. The company’s return on equity is 22.53%.

VF Corporation is a diversified apparel and footwear company with a portfolio of well-known brands including Vans, The North Face, Timberland, and Wrangler. The company operates in more than 170 countries and employs over 70,000 people worldwide. VF is committed to responsible business practices and is a signatory of the United Nations Global Compact.

– Hennes & Mauritz AB ($OTCPK:HNNMY)

H&M is a leading global fashion company with around 52,000 employees. The company’s business concept is to offer fashion and quality at the best price in a sustainable way. H&M has been listed on Nasdaq Stockholm since 1974.

– Ralph Lauren Corp ($NYSE:RL)

Ralph Lauren Corp is a company that focuses on the design and production of high-quality clothing and accessories. The company has a market cap of 6.28B as of 2022 and a return on equity of 19.37%. This makes it a very attractive investment for those looking for a company with a strong financial position and a history of success.

Summary

Despite the recent drop in share price, Hanesbrands Inc. is still a company with a lot to offer investors. The company is a leading manufacturer and marketer of apparel, including underwear, socks, hosiery, and t-shirts. The company also has a strong presence in the intimates market with brands like Playtex and Bali. Hanesbrands has a diversified portfolio of products and a strong track record of growth.

The company has a history of increasing dividends and repurchasing shares. Given the company’s strong fundamentals, Hanesbrands is a company worth considering for long-term investors.