Daily Stock Analysis: Hanesbrands

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Hanesbrands Inc., known by the ticker symbol HBI, is a mid-cap apparel manufacturing company operating in the consumer cyclical business sector. This is my first report on Hanesbrands Inc for my Viital portfolio, or any of my previous 6 folios.

Hanesbrands manufactures basic and athletic apparel under brands including Hanes, Champion, Playtex, Maidenform, Bali, and Bonds.

The company sells wholesale to discount, midmarket, and department store retailers as well as direct to consumers. 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, Europe, and Asia-Pacific.

The company was founded in 1901 and is based in Winston-Salem, North Carolina.

Three key data points gauge any dividend equity or fund such as Hanesbrands Inc (HBI).

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

HBI Price

Hanesbrands’s price per share was $10.50 as of yesterday's market close. One year ago its price was $18.46. Therefore, Hanesbrands Inc.’s share price fell $7.96 or about 43% in the past year.

If Hanesbrands’s stock trades in the range of $8.00 to $18.00 this next year, its recent $10.50 share price might rise by $4.50 to reach $15.00 by June 29, 2023. My $4.50 upside estimate is $0.85 under the median of one-year price estimates from thirteen analysts.
 

HBI Dividends

Hanesbrands’s most recently declared a quarterly dividend of $0.15 was paid May 31, 2022, to shareholders on record as of May 9th.

HBI has paid increasing quarterly dividends since June 2013.  The current dividend delivers an annual payout of $0.60 and yields 5.71%  per yesterday’s $10.50 share price.
 

HBI Returns

Adding the $0.60 HBI annual dividends to my estimated one-year price upside estimate of $4.50 shows a $5.10 potential gross gain, per share, to be reduced by any costs to trade HBI shares.

At yesterday's $10.50 closing price per share, a little under $1000 would buy 95 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.11 per share.

Subtract that maybe $0.11 brokerage cost from my estimated $5.10 gross gain estimate per share results in a net gain of $4.99 X 95 shares = $474.05 for a 47.4% net gain including a 5.71% forward-looking annual dividend yield.

So is that Hanesbrands Inc. shows a possible 47.4% net gain including a 5.71% forward-looking dividend yield.

Over the next year at this time, our $1000 investment in Hanesbrands Inc shares would generate $57.10 in cash dividends. Of course, a single share of HBI stock bought at yesterday's $10.50 price is over five times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to pick up HBI shares based on their forward-looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is 5.44 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Hanesbrands Inc. Only time and money invested in this stock will determine its market value.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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