10 Most Undervalued Canadian Stocks to Buy According to Wall Street Analysts

7. Gildan Activewear Inc. (NYSE:GIL)

Forward P/E Ratio as of April 21: 11.64

Number of Hedge Fund Holders: 25

Average Upside Potential as of April 21: 48.75%

Gildan Activewear Inc. (NYSE:GIL) manufactures and sells various apparel products. It provides various activewear products, such as T-shirts, fleece tops & bottoms, sports shirts, polos, and tank tops. Some of its brands include Gildan, Gildan Performance, Gildan Hammer, Gildan Softstyle, Comfort Colors, American Apparel, and Champion.

In Q4 2024, net sales in the company’s Activewear segment rose by 11% year-over-year, which was fueled by higher sales volumes across various channels and product lines. Gildan is capturing the market due to strong consumer response to product innovations like the soft cotton technology. For the full year 2024, if the impact of the Under Armour phase-out is excluded from the Hosiery and Underwear category, the Activewear segment’s growth aligns with the mid-single-digit increase observed in that category.

The expansion of Gildan Activewear Inc.’s (NYSE:GIL) Champion brand through distributors in the printwear channel is also expected to contribute to market share gains in 2025. Moreover, Gildan is benefiting from a changing competitive landscape with some players exiting the market. The company’s international Activewear business has seen a substantial 20% increase in sales in the last two quarters.