Canadian stock alert

CANA

CLOSING UPDATE: Gildan Activewear accelerates rise, now up 3.3% in 2 days 15 June 2018 18:16 EDT

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 CAD1.26 (or 3.3%) over the past two trading days. After rising 0.6% on Thursday, the stock rose 2.7% on Friday to trade at CAD38.89 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 0.18 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The price lifted 3.9% in the last week and climbed 5.7% in the last month.

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

Undervaluation:

+ Price/Earnings/Growth of 0.58 [3.2]

+ Return on Equity 17.7% [6.4%]

+ Return on Assets 12.2% [3.5%]

+ Return on Capital Employed 14.7% [6.2%]

+ Year-on-Year Earnings Growth of 10.2% [5.7%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 16.6 times.

+ Total Liabilities/EBITDA of 2.3 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 12.3% in the last 3 years. This is better than the sector average of 9% and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity of 17.7% is better than sector average of 6.4%.

Note

Gildan Activewear today is at a discount of 7.1% to the 12-month high of CAD41.85 on 29 Jan, 2018. It is at a premium of 10.1% to the 12-month low of CAD35.33 on 03 Nov, 2017.

The stock has underperformed 57% of the Canadian market over the past 6 months.

Bearish Signals:

Tobin's Q Ratio is 2.1. Compared with the rest of the market the stock is overvalued.

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

Overvaluation:

Price/Sales of 2.3 [0.8]

Dividend yield of 1.4% [1.8%]

TODAY'S ALERT

Afternoon Alert: Gildan Activewear accelerates rise, now up 3.8% in 2 days

15 June 2018 12:14 EDT

Gildan Activewear Inc. (TSX:GIL) is up CAD1.42 (or 3.8%) over the past two trading days. After rising 0.6% on Thursday, the stock rose 3.2% on Friday to trade at CAD39.05 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