5 Undervalued Canadian Stocks To Buy Now

4. Gildan Activewear Inc. (NYSE:GIL)

Number of Hedge Fund Shareholders: 20

Analysts’ Consensus Upside: 27.4%

Gildan Activewear Inc. (NYSE:GIL)’s shares have fluctuated heavily in price over the past few years, but hedge fund ownership of the stock has remained fairly consistent throughout that period. Richard S. Pzena’s Pzena Investment Management continued to hold the largest GIL position, as it has for the past four years. Christopher Shackelton and Adam Gray’s Coliseum Capital also took a large stake in Gildan during Q3, with the fund now having 7.21% 13F exposure to the stock.

Gildan Activewear Inc. (NYSE:GIL), a Montreal-based apparel maker, had another quarter of record sales in Q3, growing revenue by 6% year-over-year to $850 million, with sales volumes and net selling prices both rising during the quarter. That allowed the company to deliver strong gross margins of 29.7% despite the inflationary pressures that have battered many clothing companies. The company declared a cash dividend of $0.169 per share, payable on December 19, which gives GIL shares a solid yield of 2.34%.

National Bank has a CAD45 ($32.78) price target on shares of Gildan Activewear Inc. (NYSE:GIL) along with an ‘Outperform’ rating, while RBC Capital has a $47 price target on them and a similar ‘Outperform’ rating. RBC believes the company will have a strong earnings recovery in Q4 and during 2023.