Gildan Activewear (TSX:GIL): What Recent Momentum Means for Its Current Valuation

Gildan Activewear (TSX:GIL) shares have quietly moved higher over the past month, climbing alongside steady revenue and net income gains. Investors seem to be watching for signs that the apparel maker’s growth trend can continue.

See our latest analysis for Gildan Activewear.

Momentum has steadily picked up for Gildan Activewear over the past year, as the 1-year total shareholder return of 36.2% outpaces the underlying share price gains. This reflects renewed investor interest, especially following consistent fundamental growth and recent leadership changes.

If Gildan’s uptrend has you curious about other fast-movers, it might be the perfect moment to discover fast growing stocks with high insider ownership.

With Gildan trading just below analyst price targets and boasting strong fundamentals, the question remains: is there still hidden value for buyers here, or has the market already priced in the next leg of growth?

Most Popular Narrative: 7.2% Undervalued

Gildan Activewear’s most widely followed narrative values the stock above its current market price, suggesting room for upside based on strong fundamentals and future growth plans. The narrative’s fair value is CA$91.79, a notable premium to the last close of CA$85.21.

Gildan is well positioned to benefit from increasing demand for value-oriented basic apparel. As consumers prioritize affordability in challenging macro environments, this supports steady revenue growth and improves potential for market share gains. The company's vertically integrated and environmentally efficient manufacturing footprint, combined with U.S. cotton/yarn content, provides a strong competitive advantage as customers put heightened emphasis on ethical sourcing and as tariffs shift globally. This enables Gildan to protect margins and sustain earnings growth through cost savings and supply chain resilience.

Read the complete narrative.

What’s really pushing this narrative’s valuation? The growth story isn’t just about higher revenues; there is also a sharp focus on margin expansion and a future profit multiple that rivals some luxury giants. Want to uncover the bold assumptions fueling this bullish outlook? Dive deeper to see which numbers could move the goalposts for Gildan’s next act.

Result: Fair Value of $91.79 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent global demand weakness or disappointing results from new program launches could quickly challenge the assumptions behind Gildan’s current growth expectations.

Find out about the key risks to this Gildan Activewear narrative.

Build Your Own Gildan Activewear Narrative

If you think there’s more to the story or want to dig into the data on your terms, crafting your own take takes just a few minutes. Do it your way.

A great starting point for your Gildan Activewear research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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