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JimVanMeerten (56.04)

Gildan doesn't sweat growth



April 21, 2011 – Comments (0) | RELATED TICKERS: GIL

Once in awhile you run across a stock that makes you wonder why you've never heard of it.  I was looking at stocks that have had and are expected to have double digit growth in sales and earnings and are currently having positive price momentum as measured by Barchart technical indicators. I found Gildan Activewear (GIL), a company that has over 60% market share in their niche.  They make the blank tee shirts and sweat shirts that all the other companies use to print on.  The sales, earnings and price appreciation have been great.

Gildan Activewear Inc. (GIL) is a manufacturer and marketer of premium quality branded basic activewear for sale principally into the wholesale imprinted activewear segment of the North American apparel market. The company sells premium quality 100% cotton T-shirts and premium quality sweatshirts, in a variety of weights, sizes, colors and styles, as blanks, which are ultimately decorated with designs and logos for sale to consumers.

Technical Factors:

1 - 96% Barchart technical buy signals

2 - Trend Spotter buy signal

3 - 9 new highs and up 16.12% in the last month

4 - Relative Strength Index 77.44% and rising

5 - Trades at 36.38 with a 50 day moving average of 32.13

Fundamental Factors:

1 - Wall Street analysts have 4 strong buy, 6 buy and 13 hold recommendations released

2 - Sales are projected to increase by 26.90% this year and 18.40% next year

3 - Earnings are forecasted to increase by 13.20%n this year, 21.20% next year and continue by 14.20% annually for the next 5 years

Investor Sentiment:

1 - For an unknown stock it has a larger following than I expected with 356 investors voting an opinion on Motley Fool

2 - CAPS members vote 243 to 13 that the stock will out perform the market

3 - The All Stars agree with a vote of 99 to 2 -- That's pretty positive

This stock deserves a place on your watch list:

1 - Market share leader

2 - Double digit increase in sales and earnings

3 - Recent and positive price momentum

4 - Growing following both from Wall Street and the general investing public

Jim Van Meerten is an analyst for  Marketocracy Capital Management.  He shares his knowledge and experience from over 40 years of investing in stocks, mutual funds and ETFs  in his daily blog -- Barchart Portfolio Blogs.

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