Gildan Activewear, Inc. (GIL) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Gildan Activewear (GIL)? Shares have been on the move with the stock up 5.9% over the past month. The stock hit a new 52-week high of $55.39 in the previous session. Gildan Activewear has gained 15.1% since the start of the year compared to the 10.2% move for the Zacks Consumer Discretionary sector and the -0.9% return for the Zacks Textile - Apparel industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 19, 2025, Gildan reported EPS of $0.83 versus consensus estimate of $0.8 while it beat the consensus revenue estimate by 3.54%.For the current fiscal year, Gildan is expected to post earnings of $3.48 per share on $3.42 billion in revenues. This represents a 16% change in EPS on a 4.43% change in revenues. For the next fiscal year, the company is expected to earn $3.96 per share on $3.61 billion in revenues. This represents a year-over-year change of 13.63% and 5.76%, respectively.Valuation MetricsGildan may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Gildan has a Value Score of B. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 15.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.1X. On a trailing cash flow basis, the stock currently trades at 13.2X versus its peer group's average of 7.8X. Additionally, the stock has a PEG ratio of 1.73. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Gildan currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Gildan meets the list of requirements. Thus, it seems as though Gildan shares could have potential in the weeks and months to come.How Does GIL Stack Up to the Competition?Shares of GIL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Ralph Lauren Corporation (RL). RL has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of A.Earnings were strong last quarter. Ralph Lauren Corporation beat our consensus estimate by 7.59%, and for the current fiscal year, RL is expected to post earnings of $13.61 per share on revenue of $7.01 billion.Shares of Ralph Lauren Corporation have gained 8.5% over the past month, and currently trade at a forward P/E of 23.13X and a P/CF of 20.13X.The Textile - Apparel industry is in the top 14% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GIL and RL, even beyond their own solid fundamental situation.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gildan Activewear, Inc. (GIL): Free Stock Analysis Report Ralph Lauren Corporation (RL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks