Hanesbrands: Underappreciated And Undervalued By 30%

Hanesbrands (NYSE:HBI) is one of America's iconic apparel brand manufacturers that is not getting a lot of love lately, which is a shame. Share prices have been weak as slower retail traffic in big box stores takes its toll. Several large brick and mortar retailers have announced sluggish sales and store closings as e-commerce continues to take retail customers away. Several are throwing in the towel altogether. As the battle over online shopping continues to heat up, there could be more pain for retailers as consumers continue to migrate to online shopping.

With such an undercurrent, why would I buy into an apparel maker? The answer is simple, its undervalued, offers strong business model differences, and has a proven track record of expansion through acquisition. Add a history of rewarding shareholders, and HBI would seem like a respectable mid-cap value selection.

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