Analysts: Hanesbrands Inc. (NYSE:HBI) Stock Could Go to 41.00

Analysts are weighing in on how Hanesbrands Inc. (NYSE:HBI), might perform in the near term. Wall Street analysts have a much favorable assessment of the stock, with a mean rating of 1.8. The stock is rated as buy by 7 analysts, with 6 outperform and 3 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.

For the current quarter, the 9.00 analysts offering adjusted EPS forecast have a consensus estimate of $0.52 a share, which would compare with $0.50 in the same quarter last year. They have a high estimate of $0.53 and a low estimate of $0.50. Revenue for the period is expected to total nearly $1.53B from $1.52B the year-ago period.

For the full year, 10.00 Wall Street analysts forecast this company would deliver earnings of 1.94 per share, with a high estimate of $1.97 and a low estimate of $1.92. It had reported earnings per share of $1.66 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $6.20B versus 5.73B in the preceding year.

The analysts project the company to maintain annual growth of around 11.00% percent over the next five years as compared to an average growth rate of 13.07% percent expected for its competitors in the same industry.

Among the 14 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for HBI is $36.36 but some analysts are projecting the price to go as high as $41.00. If the optimistic analysts are correct, that represents a 53 percent upside potential from the recent closing price of $26.83. Some sell-side analysts, particularly the bearish ones, have called for $29.00 price targets on shares of Hanesbrands Inc. (NYSE:HBI).

In the last reported results, the company reported earnings of $0.50 per share, while analysts were calling for share earnings of $0.50. It was an earnings surprise of 0.00%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells various basic apparels for men, women, and children in the United States. The company operates through four segments: Innerwear, Activewear, Direct to Consumer, and International. It sells bras, panties, shapewears, hosiery, mens underwear, childrens underwear, and socks; and other activewear, such as T-shirts, fleece, sport shirts, performance T-shirts and shorts, sports bras, and thermals, as well as licensed logo apparel in collegiate bookstores and other channels. The company licenses its Champion name for footwear and sports accessories. It provides its products primarily under the Maidenform, Bali, Playtex, Hanes, JMS/Just My Size, Lilyette, Wonderbra, Donna Karan, DKNY, Champion, Polo Ralph Lauren, L’eggs, Hanes Beefy-T, Gear for Sports, Duofold, DIM, Nur Die/Nur Der, Lovable, Shock Absorber, Abanderado, Zorba, Rinbros, Kendall, Sol y Oro, Fila, Bellinda, Edoo, and Track N Field brand names. The company markets its products through retailers, wholesalers, and third party embellishers, as well as directly to consumers. As of January 2, 2016, it operated 252 outlet stores in the United States; and Websites under the Hanes, One Hanes Place, JMS/Just My Size, Champion, and Maidenform names. The company also sells its products in Europe, Asia, Latin America, Canada, Australia, the Middle East, Africa, and the Caribbean. Hanesbrands Inc. was founded in 2005 and is headquartered in Winston-Salem, North Carolina.