Have you been paying attention to shares of Gildan Activewear (GIL)? Shares have been on the move with the stock up 5% over the past month. The stock hit a new 52-week high of $66.74 in the previous session. Gildan has gained 6.1% since the start of the year compared to the -0.4% move for the Zacks Consumer Discretionary sector and the -12.7% return for the Zacks Textile - Apparel industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 29, 2025, Gildan reported EPS of $1 versus consensus estimate of $0.98 while it missed the consensus revenue estimate by 0.7%.
For the current fiscal year, Gildan is expected to post earnings of $4.53 per share on $3.42 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $5.35 per share on $7.16 in revenues. This represents a year-over-year change of 30.92% and 109.7%, respectively.
Valuation Metrics
While Gildan has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Gildan has a Value Score of B. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.8X. On a trailing cash flow basis, the stock currently trades at 16.1X versus its peer group's average of 9.6X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Gildan currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Gildan meets the list of requirements. Thus, it seems as though Gildan shares could still be poised for more gains ahead.
How Does GIL Stack Up to the Competition?
Shares of GIL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Revolve Group, Inc. (RVLV). RVLV has a Zacks Rank of #1 (Strong Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Revolve Group, Inc. beat our consensus estimate by 118.18%, and for the current fiscal year, RVLV is expected to post earnings of $0.82 per share on revenue of $1.21 billion.
Shares of Revolve Group, Inc. have gained 0.6% over the past month, and currently trade at a forward P/E of 36.73X and a P/CF of 39.07X.
The Textile - Apparel industry is in the top 20% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GIL and RVLV, even beyond their own solid fundamental situation.
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Gildan Activewear, Inc. (GIL): Free Stock Analysis Report Revolve Group, Inc. (RVLV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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