HBI Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. As for HBI, the DDM model, as implemented by StockNews, implies a positive return of 22.38% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Hanesbrands Inc are:

• As for its position relative to other Consumer Cyclical stocks that issue dividends, Hanesbrands Inc offers a higher dividend yield than 92.67% of them.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Consumer Cyclical sector, the expected return of 22.38%, based on the stock's current share price and target price based on a dividend discount model, is greater than 88.67% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, HBI has a discount rate lower than 88.67% of them (a lower discount rate is associated with lower risk).
• In comparison to other dividend stocks in the Consumer Cyclical sector, HBI is growing its dividends at a faster rate than about 68.75% of them.

HBI Dividends vs. Peers