Forget Naked Brand Group, Buy These 3 Intimate Apparel Stocks Instead

: NAKD | Naked Brand Group Ltd. News, Ratings, and Charts

NAKD – Naked Brand Group (NAKD) has become somewhat of a cult stock as many traders on Reddit’s WSB believe it has significant upside. The POWR Rating disagrees as it has a D grade. However, the Reddit traders are certainly correct that apparel sales should continue rising after being depressed for more than a year. Instead of rolling with the overhyped NAKD, consider the rest of the players in the space.  Below, we provide a look at three of those stocks in Hanes Brands (HBI), L Brands (LB), and Gildan Activewear (GIL).

Naked Brand Group (NAKD) has become somewhat of a cult stock as many traders on Reddit’s WSB believe it has significant upside. The POWR Rating disagrees as it has a D grade.

 

However, the Reddit traders are certainly correct that apparel sales should continue rising after being depressed for more than a year.
 
Instead of rolling with the overhyped NAKD, consider the rest of the players in the space.  Below, we provide a look at three of those stocks in Hanes Brands (HBI), L Brands (LB), and Gildan Activewear (GIL).
 
HBIBased in Winston-Salem, North Carolina, HBI designs, makes and sells underwear and additional apparel for men, women, and kids. Examples of HBI product lines include Hanes, Playtex, Wonderbra, Barely There, Just My Size, and Bali. HBI’s innerwear segment raked in nearly 45% of the company’s revenue in ’20.

HBI has a B POWR Rating grade. The stock has Bs in the Momentum and Value components of the POWR Ratings. HBI also has C grades in the Growth and Quality components of the POWR Ratings. You can find out how HBI fares in the rest of the POWR Ratings components such as Sentiment and Stability by clicking here.

Of the 66 stocks in the Fashion & Luxury segment, HBI is ranked 30th. Investors who would like to learn more about the stocks in this space can do exactly that by clicking here.

The analysts are pounding the table in favor of HBI, setting an average target price of $21.45. If HBI hits this price target, it will have climbed by nearly 17%. The highest analyst price target for the stock is $27. Of the 10 analysts to have issued HBI recommendations, one views the stock as a Strong Buy, six view it as a Buy, and three views it as a Hold.

HBI has a relatively low forward P/E ratio of 11.72 even though it is trading closer to its 52-week high of $22.82 than its 52-week low of $12.28. HBI has a beta of 1.51 so it is likely to hold most of its value should the market tank.

LB

LB has pivoted from an apparel specialty retailer to a segment dominator with a focus on women’s intimate apparel, beauty products, personal care items, and fragrances used in the home. Based in Columbus, Ohio, LB sells merchandise in nearly half a dozen countries. LB items are sold in malls, online, through catalogs, and additional channels.

LB’s Bath & Bodyworks business pulled in 54% of the company’s fiscal year 2020 net sales. The remainder of LB’s sales stems from its Victoria’s Secret line. Victoria’s Secret recently started trading under its own stock ticker symbol of VSCO.

LB has a B POWR Rating grade. The stock has A grades in the Quality and Growth components of the POWR Ratings. LB has Cs in the Value and Momentum components. You can find out how the stock fares in the Sentiment and Stability components by clicking here.

Of the 66 stocks in the Fashion & Luxury space, LB is ranked 15th. Click here to learn more about the stocks in this space. L’s forward P/E ratio of 12.88 and beta of 1.75 are both reasonable figures that should not give investors pause.

The analysts believe LB will trade around their average target price of $78.11. However, the highest analyst target price for the stock is a whopping $104. LB’s average analyst price target has increased more than $47 in the previous 44 weeks.

GIL

GIL is a manufacturer and marketer of activewear in the activewear segment of the apparel market. Gil’s 100% cotton shirts, high-quality sweatshirts, and unique styles have legitimate mass appeal. GIL has a forward P/E ratio of 18.74. This figure is slightly high yet it should not be a deal-breaker for investors. GIL’s beta of 1.58 indicates the stock probably won’t significantly fluctuate if the market gets wonky.

GIL has a B POWR Rating grade, meaning it is a Buy. The stock has an A Sentiment component grade along with Bs in the Momentum and Growth components. Investors who are curious as to how GIL fares in the Value, Quality, and Stability components of the POWR Ratings can find out by clicking here.

Of the 35 stocks in the Athletics & Recreation space, GIL is ranked 21st. You can learn more about this segment by clicking here.

The top analysts have established an average target price of $40.15 for the stock. This target price indicates GIL has 18.61% upside potential. The analysts’ average price target for the stock has increased by $24.29 in the prior 14 months. Of the 12 analysts to provide GIl recommendations, one considers the stock a Strong Buy, 10 consider it a Buy and one considers it a Hold.


NAKD shares fell $0.01 (-2.53%) in premarket trading Wednesday. Year-to-date, NAKD has gained 181.25%, versus a 18.30% rise in the benchmark S&P 500 index during the same period.


About the Author: Patrick Ryan


Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
NAKDGet RatingGet RatingGet Rating
HBIGet RatingGet RatingGet Rating
LBGet RatingGet RatingGet Rating
GILGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Is the Bear Market Over???

The S&P 500 (SPY) quickly dispensed with 2 key levels of resistance on Wednesday following statements by Fed Chairman Powell. Now more people are contemplating that the 2022 bear market may be over and time to get more bullish. 40 year investment veteran Steve Reitmeister weighs in on this timely topic in his new commentary. Spoiler Alert: he is not impressed and still believes that the bears have the upper hand. Read on below for the full story...

:  |  News, Ratings, and Charts

1 Momentum Stock to Buy Now for Extraordinary Gains in 2023

Valero Energy (VLO) expanded its production for the fourth quarter anticipating increased demand. The stock is up nearly 70% in 2022. It is trading above its 50-day and 200-day moving averages. As this momentum is expected to remain, investors should consider buying VLO for continued gains in 2023. Read on…

:  |  News, Ratings, and Charts

3 Stocks Every Investor Should Add to Their Watchlist This Week

With significant growth registered in the third quarter, investor confidence has been uplifted. Hence, quality stocks with solid growth prospects, such as Amgen (AMGN), Cognizant Technology Solutions (CTSH), and Dole plc (DOLE), could be added to the watchlist this week. Read on…

:  |  News, Ratings, and Charts

1 Stable Stock Warren Buffett Owns and You Should Too

World-famous investor Warren Buffett picked up shares of healthcare services provider McKesson Corporation (MCK) this year. The company has raised its dividends for 16 consecutive years. With a recession expected next year, this healthcare services stock is expected to remain stable as demand for healthcare and related services usually remain unaffected regardless of economic conditions. Thus, investors may consider buying the stock now. Read more…

:  |  News, Ratings, and Charts

3 Stocks Every Investor Should Add to Their Watchlist This Week

With significant growth registered in the third quarter, investor confidence has been uplifted. Hence, quality stocks with solid growth prospects, such as Amgen (AMGN), Cognizant Technology Solutions (CTSH), and Dole plc (DOLE), could be added to the watchlist this week. Read on…

Read More Stories

More Naked Brand Group Ltd. (NAKD) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All NAKD News