Is Gildan Activewear (TSX:GIL) Still Undervalued? A Fresh Look at Its Stock Valuation

Gildan Activewear (TSX:GIL) shares have seen some movement recently, drawing investor attention to its performance trends and underlying business fundamentals. The stock’s recent return patterns offer context for assessing whether this could mark an attractive moment for value-oriented investors.

See our latest analysis for Gildan Activewear.

Gildan Activewear’s share price momentum has cooled a bit in the past month, but it is still up nearly 20% year-to-date, and shareholders have enjoyed a total return of 18% over the past twelve months. Taking a step further back highlights some impressive long-term compounding, with a 120% total return in three years and 158% over five years. This suggests the company’s long-haul story has paid off for patient investors.

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But with strong historical returns and double-digit revenue growth, is Gildan Activewear still a bargain, or have investors already priced in the company’s future prospects? Could there still be value left to capture?

Most Popular Narrative: 20% Undervalued

Gildan Activewear’s most popular narrative claims the stock is priced well below its estimated fair value. The narrative’s fair value calculation is substantially higher than the most recent closing price. This sets up a striking contrast between prevailing analyst expectations and where the market currently trades, fueling ongoing debate over whether the upside is already captured or still available.

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.

Curious just how aggressive analysts are on future earnings? The real surprise sits in their projections for margin resilience and growth rates even as competition heats up. Want to see which bold numbers justify this optimistic price target? Unlock the narrative for insights you won’t find in the headlines.

Result: Fair Value of $101.00 (UNDERVALUED)

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

However, continued weakness in international markets or underperformance of new program launches could challenge the upbeat outlook and put pressure on Gildan’s growth narrative.

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

Build Your Own Gildan Activewear Narrative

If you have a different perspective or want to dig deeper into the numbers, you can put together your own narrative in just a few minutes, and Do it your way.

A great starting point for your Gildan Activewear research is our analysis highlighting 5 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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