GIL Should I Buy
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Gildan Activewear Inc. (GIL) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the stock shows some positive long-term potential due to analyst optimism and strategic acquisitions, the recent financial performance, lack of strong trading signals, and neutral technical indicators suggest waiting for clearer entry points or improved financial metrics.
The technical indicators are mixed. The MACD is positive but contracting, RSI is neutral at 51.36, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the price is slightly below the pivot level (70.869), and the stock has a 50% chance of declining in the short term (-1.8% next day, -2.5% next week).
Analysts have raised price targets recently, with Scotiabank, TD Securities, BMO Capital, and UBS projecting higher valuations due to the Hanesbrands acquisition and Gildan's strong positioning in the apparel market.
The company's gross margin increased by 8.09% YoY in Q3 2025, reflecting operational efficiency.
Bullish moving averages indicate a positive long-term trend.
Financial performance in Q3 2025 showed a decline in net income (-8.61% YoY) and EPS (-2.44% YoY), which may concern long-term investors.
Lack of significant hedge fund or insider trading activity suggests limited institutional confidence in the short term.
No recent news or event-driven catalysts to drive immediate price appreciation.
In Q3 2025, revenue increased by 2.18% YoY to $910.57M, but net income dropped by 8.61% YoY to $120.16M. EPS also declined by 2.44% YoY to 0.8. However, gross margin improved by 8.09% YoY to 33.67, indicating better cost management.
Analysts are optimistic about Gildan's long-term potential, with multiple firms raising price targets recently (e.g., UBS to $110, BMO Capital to $78). The acquisition of Hanesbrands is expected to drive synergies, market share growth, and margin expansion. All analysts maintain a Buy or Outperform rating.
