Stock Market Recession 2022: 5 Stocks to Sell Now According to Analysts

1. Hanesbrands Inc. (NYSE:HBI)

Number of Hedge Fund Holders: 32

Hanesbrands Inc. (NYSE:HBI) is a consumer goods company, designing and selling apparel for men, women, and children. The company offers its products under the Hanes, Champion, Polo Ralph Lauren, DKNY, Alternative, Gear for Sports, Explorer, Maidenform, Rinbros, and Bellinda brands. Amid a recession, customers are likely to shift away from high-end clothing and accessories to generic brands. 

Stifel analyst Jim Duffy downgraded Hanesbrands Inc. (NYSE:HBI) on May 5 to Hold from Buy with a price target of $13, down from $26, after its Q1 results were published. The analyst observed that the management has “sharply” slashed its guidance for operating cash flow. The analyst added that the risk-reward profile on Hanesbrands Inc. (NYSE:HBI) is “unfavorable until visibility to capacity for profit improvement in FY23” considering the staggering inflation in input costs, pressure to mass channel consumer spending capacity, and unfavorable change to leverage profile.

According to Insider Monkey’s records, 32 hedge funds were long Hanesbrands Inc. (NYSE:HBI) at the end of Q4 2021, with collective stakes worth $450.1 million, compared to 34 funds in the earlier quarter, with stakes in the company valued at $501 million. Ric Dillon’s Diamond Hill Capital is the biggest shareholder of the company, with approximately 22 million shares worth $366.3 million.

You can also take a look at 11 Best Video Game Stocks To Invest In and 12 Best American Stocks To Buy in 2022. 

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