2-Star Stocks Poised to Plunge: Hanesbrands?

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, underwear and hosiery maker Hanesbrands (NYSE: HBI  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Hanesbrands' business and see what CAPS investors are saying about the stock right now.

Hanesbrands facts

Headquarters	Winston-Salem, N.C.
Market Cap	$2.12 billion
Industry	Apparel, accessories, and luxury goods
Trailing-12-Month Revenue	$4.03 billion
Management	Chairman/CEO Richard Nol (since 2006) CFO E. Lee Wyatt, Jr. (since 2005)
Compound Annual Revenue and Net Income Growth (Over Past 2 Years)	(5.4%) and (6.8%)
Cash / Debt	$47.6 million / $2.3 billion
6-Month Return	148%
Competitors	Gap (NYSE: GPS  ) Nike (NYSE: NKE  )
CAPS Members Bearish on HBI Also Bearish on	Simon Property Group (NYSE: SPG  ) Capital One Financial (NYSE: COF  )
CAPS Members Bullish on HBI Also Bullish on	Cisco Systems (Nasdaq: CSCO  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 18% of the 207 members who have rated Hanesbrands believe the stock will underperform the S&P 500 going forward. These bears include All-Stars TMFBuck and mrindependent, both of whom are ranked in the top 10% of our community.

Two months ago, TMFBuck warned Fools to keep their hands off Hanesbrands: "Increased competition within their biggest buyer [Wal-Mart (NYSE: WMT  ) ], rising commodity prices and rising inventories don't paint a pretty picture."

In a more recent pitch, mrindependent also tried to prevent Fools from getting hosed:

This stock looks like a reasonable deal if you merely look compare its 2009 consensus earnings estimate (i.e. $1.60) to its current price (i.e. $20.18). Digging deeper, you realize that this company releveraged itself in 2006 and is saddled with lots of term debt. My estimate is that the company must use 100% of earnings to pay down debt for the next 10 years. At 7.7 times book value, I think this company is a reasonable underperform pick.

What do you think about Hanesbrands, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!