Gildan Activewear
GIL.TO (TSX)
Gildan Activewear stands out as a top performer in the consumer cyclical sector, currently trading at a 33% discount to its fair value estimate of $128. With a solid dividend yield of 1.62% and impressive returns—24.10% over the past year and 180.80% over the last five years—investors may find it an attractive option for long-term growth. Analysts rate the stock favorably, with a consensus "Buy" from UBS and an overall B+ rating, reflecting positive earnings momentum and strong market confidence.
Pros:
- Strong growth in recent years
- High returns over 5 and 10 years
Cons:
- Market volatility risk
- Dependence on consumer spending
Gildan Activewear presents a compelling investment opportunity for those seeking long-term growth in the consumer cyclical sector, particularly given its robust historical returns and favorable market ratings. With a current trading price significantly below its fair value estimate and a modest dividend yield, it may appeal to both growth-oriented and income-focused investors looking for a well-rated stock with solid earnings momentum.