NEW YORK (TheStreet) -- Hanesbrands shares are up 1.87% to $114.57 in trading on Wednesday after the apparel maker raised its quarterly dividend and announced a 4-to-1 stock split today. The company raised its quarterly cash dividend by 33% to 40 cents per share from 30 cents per share on a pre-split basis payable March 3 to shareholders of record February 9. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. The company also announced a 4-to-1 stock split that will be executed in the form of a stock dividend issued to stockholders on the same date of the dividend payout. "The board has confidence in the company's successful business model, and the decision to significantly raise our quarterly cash dividend and split the stock is a reflection of the company's continued strong financial performance and stock price appreciation," said CEO Richard Noll. TheStreet Ratings team rates HANESBRANDS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation: "We rate HANESBRANDS INC (HBI) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: Despite its growing revenue, the company underperformed as compared with the industry average of 17.1%. Since the same quarter one year prior, revenues rose by 17.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. 38.82% is the gross profit margin for HANESBRANDS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 8.49% trails the industry average. Compared to its closing price of one year ago, HBI's share price has jumped by 67.91%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels. HANESBRANDS INC's earnings per share declined by 5.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HANESBRANDS INC increased its bottom line by earning $3.25 versus $2.31 in the prior year. This year, the market expects an improvement in earnings ($5.65 versus $3.25). Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, HANESBRANDS INC's return on equity exceeds that of both the industry average and the S&P 500. You can view the full analysis from the report here: HBI Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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