This Value Stock Is Up 25% Since Christmas, and It's Still Dirt Cheap
2022 was a brutal year for the stock market. The S&P 500 (SNPINDEX: ^GSPC) dropped 19.4%, the Dow Jones Industrial Average (DJINDICES: ^DJI) suffered an 8.8% decline, and the tech-heavy Nasdaq Composite (NASDAQINDEX: ^IXIC) tumbled 33.1%. High-flying growth stocks that soared during the first two years of the pandemic were hit particularly hard as investors realized that trees don't grow to the sky, and that the era of ultra-low interest rates wasn't going to last forever.
Stocks that were priced more reasonably going into 2022 didn't necessarily fare any better. Many cheap stocks got much cheaper, in some cases dropping below their March 2020 lows. One example is apparel manufacturer Hanesbrands (NYSE: HBI). The stock lost more than 60% of its value last year as elevated inflation and recession fears spooked investors. At its low, Hanesbrands stock dipped below where it traded when the pandemic was shutting down economies in early 2020.
That multi-year low didn't last long. Since Christmas, Hanesbrands stock has rebounded about 25%. And while the company's results are going to be rough this year, pessimism is running far too high.
Source Fool.com
