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Hanesbrands - AI Stock Analysis

Analysis generated November 19, 2024

Hanesbrands Inc. (HBI) is a leading marketer of everyday basic apparel under some of the world's strongest apparel brands in the Americas, Europe, and Asia-Pacific. The company designs, manufactures, sources, and sells a broad range of apparel essentials such as T-shirts, bras, panties, men's underwear, children's underwear, socks, hosiery, and activewear.

Fundamental Analysis

In the latest quarter, Hanesbrands reported a revenue of $937M. This represents a decrease of 5.86% compared to the previous quarter, indicating a mild downturn. However, a more concerning sign is the 37.99% decrease compared to the same quarter last year, which raises questions about the company's ability to maintain its market position.

The net income for the last quarter was $30M, a significant increase of 110.04% compared to the prior quarter and an astounding 177.20% jump from the same quarter last year. These figures suggest that Hanesbrands is managing its profitability impressively despite the decline in revenue.

EBITDA for the last quarter stood at $105M, showing a 274.32% increase from the previous quarter and a 51.25% increase year-over-year. These numbers indicate robust operational efficiency and improved earnings quality over time.

The current P/E ratio is 129.84. This high P/E ratio might suggest overvaluation, which could make potential investors wary. Higher P/E ratios can indicate that the stock price is higher than the company's earnings justify, leading to a possible bearish outlook.

Technical Analysis

Today's stock price is $8.19, reflecting a 9.35% increase compared to a month ago and a 104.75% increase compared to a year ago. This indicates a bullish trend both in the short and long term.

The current 10-day Simple Moving Average (SMA10) is $8.08, slightly above the previous SMA10 of $8.06. This marginal increase suggests a potential upward trend in price movement.

The Relative Strength Index (RSI) is at 45.9, indicating a neutral condition. An RSI between 30 and 70 traditionally suggests that the asset is neither overbought nor oversold.

Alternative Data Analysis

From an employment perspective, Hanesbrands has 288 open positions, down by 9% in the last few months. This reduction in job postings could indicate cost-cutting measures or an attempt to improve margins, neither of which bode well for a growth trajectory.

Employee sentiment shows that an estimated 45% of employees have a positive business outlook, a number that is relatively low. However, this percentage has increased by 7% over the last couple of months, a slightly positive trend.

On the customer acquisition front, Hanesbrands' website received an estimated 1.2M visitors, with no meaningful change in the past few months. This stagnant metric could signify a plateau in customer interest.

Customer engagement metrics reveal 76,000 followers on Instagram, with no meaningful increase or decrease recently, indicating stable but unimproved engagement levels.

It is also important to note that Hanesbrands has an AI score of 22 from AltIndex, marking a strong sell signal, based on the aggregation of fundamental, technical, and alternative data analyses.

Conclusion and Recommendation

In summary, while Hanesbrands has shown positive signs in terms of profitability and operational efficiency, the declines in revenue and concerning employee sentiment are red flags. The high P/E ratio suggests potential overvaluation, and while the technical indicators show a recent bullish trend, the alternative data insights provide a mixed outlook. Therefore, based on the comprehensive data provided, the recommendation would be to exercise caution. Potential investors might want to hold off or consider other opportunities unless new positive trends emerge that alter the company's current trajectory.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.