NEW DIRECTIONAL CALL PLAYS
Hanesbrands Inc. - HBI - close: 114.70 change: +2.15
Stop Loss: 111.75
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 786 thousand
Entry on December -- at $---.--
Listed on December 02, 2014
Time Frame: Exit prior to 2015 January option expiration
New Positions: Yes, see below
Why We Like It:
HBI is in the consumer goods sector. The company makes clothing. According to the company website, "Our innerwear and activewear apparel brands include Hanes, Champion, Playtex, Bali, Maidenform, Flexees, JMS/Just My Size, barely there, Wonderbra and Gear for Sports. In addition, our international brands include Zorba, Sol y Oro, Rinbros, Track N Field and Ritmo.
We sell bras, panties, shapewear, sheer hosiery, men's underwear, children's underwear, socks, T-shirts and other activewear in the United States, Canada, Mexico and other leading markets in the Americas, Asia and Europe. In the United States, we sell more units of intimate apparel, male underwear, socks, shapewear, hosiery and T-shirts than any other company."
Shares of HBI have been a strong performer for investors thanks to significant earnings growth. The company has beaten Wall Street's bottom line estimate and raised guidance the last four quarters in a row. Investors Business Daily noted that HBI's profits have risen 40% in the last three quarters, which is the best streak of profitability since 2010. HBI's quarterly pretax profit margins are at multi-year highs. Wall Street expects HBI's profits to rise +46% in Q4.
HBI's Chairman and Chief Executive Office, Richard Noll, commented on their most recent earnings report (released October 29th) saying,
"Our business continues to perform very well, particularly in an uncertain consumer environment. We have delivered more earnings in the first three quarters of 2014 than we did all of last year. Our Innovate-to-Elevate strategy, global self-owned supply chain, and acquisitions continue to generate shareholder value and give us confidence in our potential for many years to come."
After breaking out to new highs a few days ago the stock has pulled back to retest prior highs as new support. Today's bounce looks like a new bullish entry point to hop on board the HBI train. Tonight I am suggesting a trigger to buy calls at $115.05.
Trigger @ $115.05
- Suggested Positions -
Buy the 2015 Jan $120 call (HBI150117C120) current ask $1.15
Option Format: symbol-year-month-day-call-strike