Gildan Activewear Outlook: Bearish Signals Dominate Despite Mixed Analyst Ratings

Market Snapshot

Takeaway: Gildan Activewear (GIL.N) is under pressure with a recent price drop of -4.79% and an overwhelming number of bearish technical signals—suggesting caution for investors.

News Highlights

Recent headlines highlight shifts in the luxury and manufacturing sectors, with implications for broader market sentiment: China’s appetite for luxury goods is changing – As Chinese consumers shift preferences, brands reliant on the country’s middle class may face headwinds. Barbie maker signals toy price increases amid tariffs – Tariff pressures are spilling into consumer goods, with potential ripple effects on retail and manufacturing sectors. Trump raises steel tariffs to 50% – Heightened protectionism could weigh on industrial and textile companies, including those in the apparel sector.

Analyst Views & Fundamentals

Gildan Activewear has mixed analyst sentiment. The simple average rating stands at 4.20, while the performance-weighted rating is a weaker 2.32, highlighting a divergence in both confidence and track records among analysts.

The analyst ratings are not consistent, with recent ratings split between 2 Strong Buy, 2 Buy, and 1 Neutral. Despite a generally positive rating mix, the current price trend of a 4.79% drop seems to align more closely with the weighted, performance-based expectations.

Key fundamentals include: Price-to-Book (PB): 2.15 – Score: 3.00 (internal diagnostic score) Price-to-Cash Flow (PCF): 32.51 – Score: 0.00 Price-to-Earnings (PE): 73.03 – Score: 2.00 Return on Equity (ROE): 23.03% – Score: 3.00 Net Income to Revenue: 10.92% – Score: 2.00 Cash to Market Value: 14.03% – Score: 2.00

While ROE appears healthy, the elevated PE and weak PCF suggest investors are wary of earnings potential and cash flow generation.

Money-Flow Trends

The fund-flow pattern for GIL.N is mixed. Despite a negative overall trend (-4.79% price drop), retail (small) inflow ratio is 48.08%—slightly above average. Larger institutional inflows, however, are weaker: 48.81% (large), 46.84% (extra-large), and 47.58% (block).

With a fund-flow score of 7.74 (good), the market is showing some underlying strength in retail confidence, but the overall trend remains bearish—indicating caution for long-term buyers.

Key Technical Signals

The technical outlook for Gildan Activewear is weak, with 5 bearish signals and 0 bullish ones in the last 5 days. The technical score is 2.88 (weak), and the model suggests avoiding the stock.

Recent indicators include: Bearish Engulfing (score 1.00) on 2025-11-28 MACD Death Cross (score 1.00) on 2025-11-28 WR Overbought (score 3.54) on 2025-11-14 MACD Golden Cross (score 4.45) on 2025-11-26

The bearish patterns, particularly the Death Cross, are dominant and suggest a continuation of the downward trend. The internal diagnostic scores reflect a lack of momentum and weak internal strength in key reversal patterns.

Conclusion

Gildan Activewear is currently navigating a challenging environment. With mixed analyst ratings, weak technical signals, and a falling price trend, the stock appears to be at a crossroads. The fund-flow data shows some retail support, but institutional interest remains muted.

Actionable takeaway: Consider holding off on new positions and monitor key earnings and tariff developments for potential short-term catalysts. For now, the bearish technical setup suggests a cautious approach for most investors.