Stifel Nicolaus Maintains a Hold on Hanesbrands Inc. (HBI)

Hanesbrands Inc. (NYSE:HBI) is one of the best cheap stocks under $10 to buy now. Hanesbrands Inc. (NYSE:HBI) received a rating update from Stifel Nicolaus analyst Peter McGoldrick on November 7, who maintained a Hold rating on the stock with a $6 price target.

Why Hanesbrands Inc. (HBI) Crashed Last Week?

The rating followed Hanesbrands Inc.’s (NYSE:HBI) fiscal Q3 2025 earnings release on November 6. Steve Bratspies, CEO of Hanesbrands Inc. (NYSE:HBI), stated that the continued execution of the company’s cost-saving initiatives resulted in operating margin expansion and operating profit growth, which, in conjunction with lower interest expense, drove a 25% growth in adjusted EPS in the quarter.

However, US net sales in the quarter dropped 4.5% compared to the previous year due to unanticipated shifts in ordering patterns at one of Hanesbrands Inc.’s (NYSE:HBI) large retail partners, which had an effect on late-quarter replenishment orders. Despite the near-term sales challenge,  Hanesbrands Inc. (NYSE:HBI) experienced a sequential improvement in unit point-of-sale trends each month during the quarter as it delivered notable performance during the key back-to-school period.

In addition, operating margin of 22.2% rose 20 basis points over the prior year period, driven by reduced input costs and the benefits of productivity and cost savings initiatives.

Hanesbrands Inc. (NYSE:HBI) designs, sources, manufactures, and sells basic apparel, including T-shirts, underwear, shape wear, socks, and activewear. The company’s operations are divided into the US and International segments.

While we acknowledge the potential of HBI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HBI and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.