NEW YORK, April 28 Shareholders of Hanesbrands
should reap further gains as the U.S. clothing maker is
expected to earn more from new higher-priced products and lower
costs on cotton and interest payments, Barron's said in its
April 29 edition.
Wall Street analysts projected Hanesbrands, known for its
basic T-shirts and underwear, will make $3.45-a-share in 2013, a
32 percent rise from a year ago. They anticipated a 16 percent
increase in 2014, the paper said.
"With that growth, if the stock's price-to-earnings ratio
nudges close to 15 over the next year, stockholders should
secure a 20 percent gain," it said.
The company also introduced a quarterly dividend of 20 cents
a share, which will begin on June 3.
Hanesbrands shares closed up 0.15 percent on Friday at
$49.16, near their 52-week high of $50.00. The stock has risen
37.2 percent so far this year, surpassing the 11-percent gain
for the Standard & Poor's 500 index, the paper noted.
On Tuesday, the company reported its first quarter results
with a surge in operating profit to $85.1 million from $10.6
million a year earlier. However, its sales dipped 3 percent to
"The up-market move has given some shoppers pause," Barron's
said, adding, "Free cash flow is surging."