Canadian stock alert

CANA

CLOSING UPDATE: Gildan Activewear accelerates rise, now up 4.3% in 2 days 19 January 2018 18:23 EST

NEWS BITES - NORTH AMERICA

This is an end of day Alert, produced after today's Canadian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Gildan Activewear, Canada's largest manufacturing - apparel & furniture company by market capitalisation, is up CAD1.73 (or 4.3%) over the past two trading days. After rising 1.6% on Thursday, the stock rose 2.7% on Friday to trade at CAD41.89 vs. the S&P/TSX 60 Index that is up 0.2% in the same period.

Technical indicators complementing today's significant uptrend:

+ The positive 0.11 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the last three months the stock has hit a new 52-week high once.

+ The price lifted 3.2% in the last week and increased 1.3% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Return on Equity 16.4% [7.0%]

+ Return on Assets 11.6% [3.9%]

+ Return on Capital Employed 12.8% [5.2%]

+ Year-on-Year Earnings Growth of 17.6% [9.1%]

Other Bullish Signals include:

+ Total Liabilities/EBITDA of 2.5 is comfortably below the Joseph Piotroski benchmark of <5.

+ As per the Du Pont analysis, Return on Equity of 16.4% is better than sector average of 7.0%.

Note

The stock has outperformed 60% of the Canadian market over the past 6 months.

Bearish Signals:

Tobin's Q Ratio is 2.5. Compared with the rest of the market the stock is overvalued.

Overbought/Bearish:

The 0.7% discount to 12-month high of CAD42.17 against the 37.0% premium to 12-month low of CAD30.57 suggests the climb might be peaking.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Sales of 2.8 [1.1]

Dividend yield of 1.2% [1.5%]

TODAY'S ALERT

Afternoon Alert: Gildan Activewear accelerates rise, now up 4.4% in 2 days

19 January 2018 14:45 EST

Gildan Activewear Inc. (TSX:GIL) is up CAD1.78 (or 4.4%) over the past two trading days. After rising 1.6% on Thursday, the stock rose 2.8% on Friday to trade at CAD41.94 vs. the S&P/TSX 60 Index that is up 0.2% in the same period.

Gildan Activewear Inc. (T:GIL; TSE:GIL; N:GIL; CN:GIL)

ISIN: CA3759161035

PermID: 5000631312

CIK: Gildan Activewear Inc.

Source: www.BuySellSignals.com