Stock Strategist: Why Hanes Should Be on Your Shopping List

[Morningstar Logo]( [Company Site]( [Company News]( [Membership]( [Portfolio]( [Stocks]( [Options]( [Funds]( [ETFs]( [Markets]( [Tools]( [Personal Finance]( [Discuss]( Stock Strategist Why Hanes Should Be on Your Shopping List The apparel maker is a refreshingly dull value play in a turbulent world. [tab_bar] by David Swartz | 6/12/2020 1:00:00 PM We believe Hanesbrands’ [HBI]( transformation is underappreciated by the market and that the risk/reward of an investment is very favorable, as the shares trade well below our $23 fair value estimate. In our opinion, investors are focused on difficulties in the company’s low-growth innerwear operations and partial dependence on physical retail in the United States and are overlooking the mix shift in its business and its sustainable free cash flow generation. Through a series of acquisitions (at a cost of about $2.7 billion since 2013), Hanes has transformed its brand portfolio into a more diversified and global operation with higher margins and returns. Its Champion brand has grown into a multinational athleisure brand with a significant following and growth opportunities. We think cohesive management of the brand will allow Champion to stand on its own even if the athleisure fashion trend fades. To read more, click [here](. Sponsored Links [Buy a Link Now]( Podcast: Investing Insights From Morningstar.com Listen to a roundup of the latest videos featured on Morningstar.com [in this podcast]( available through iTunes. Free Issue | Morningstar's Stock Newsletter >> Morningstar StockInvestor is celebrating more than 10 successful years of high-quality stock investing. Its two real-money portfolios have outperformed the S&P 500 since 2001. [Get new ideas for the core of your stock portfolio.]( Search Most Recent Articles [2020: The Year for Roth Conversions?]( [Sustainability Matters: A Take-Action Moment]( [How State and Local Taxes Affect Your Retirement Plan]( Latest Analyst Reports [Discover Financial Services]( [Banco Santander Chile]( [Banco De Chile]( [Starbucks]( [FactSet Research Systems]( ABOUT OUR EMAIL To unsubscribe and update your preferences, go to our [email newsletter page](. All subscription changes will take effect within one business day. If you have questions about Morningstar.com or your membership, send a note to premium@morningstar.com. ABOUT OUR PRIVACY POLICY Please [click here]( to learn about Morningstar's privacy policy. (c) Copyright 2020. Morningstar, Inc. 22 W. Washington Chicago, Illinois, 60602 All rights reserved.