Hanesbrands Inc. (HBI), Gildan Activewear Inc (USA) (GIL), Coach, Inc. (COH): Three Apparel Retailers for Your Portfolio

Its recent incursion in Europe should also help drive growth in coming years. Further expansion opportunities are provided by Coach, Inc. (NYSE:COH)’s men’s apparel segment and its online business, both of which are expected to deliver incremental results in the years to come.

Moreover, its balance sheet is something to love. With a substantial cash balance and zero long-term debt, cash is available for spending. An active management of cash flows has been improving shareholders’ value and returns while the company pursued strategic acquisitions. This is a trend that seems likely to continue in the years to come. Yielding 2.34% in the form of dividends, trading below the industry average valuation, offering great financials and growth prospects, and showing effectiveness in keeping competitors at bay, I’d recommend buying and holding this stock.

Bottom line

Big apparel producers and distributors have plenty of growth opportunities, as their scale and brand recognition secure and support their leading positions. Although all of the above mentioned companies provide plenty of upside potential for shareholders, I’d go with Hanesbrands Inc. (NYSE:HBI), which is expected to deliver the highest growth rate among these three while trading at the cheapest valuation. I
ts long-term prospects and its strong balance sheet make it a worthy investment to add to your portfolio.

Damian Illia has no position in any stocks mentioned. The Motley Fool recommends Coach. The Motley Fool owns shares of Coach.

The article 3 Apparel Retailers for Your Portfolio originally appeared on Fool.com.

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