Should You Buy Gildan Activewear Inc (USA) (GIL)?

These stocks are Comerica Incorporated (NYSE:CMA), Santander Consumer USA Holdings Inc (NYSE:SC), Varian Medical Systems, Inc. (NYSE:VAR), and Fortinet Inc (NASDAQ:FTNT). This group of stocks’ market valuations resemble GIL’s market valuation.

As you can see these stocks had an average of 34.5 hedge funds with bullish positions and the average amount invested in these stocks was $658 million. That figure was $203 million in GIL’s case. Comerica Incorporated (NYSE:CMA) is the most popular stock in this table. On the other hand Varian Medical Systems, Inc. (NYSE:VAR) is the least popular one with only 27 bullish hedge fund positions (despite the net increase of 8 funds long the stock). Compared to these stocks Gildan Activewear Inc (USA) (NYSE:GIL) is even less popular than VAR. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.