Although markets have tumbled in the aftermath of the latest
FOMC meeting, some sectors have managed to hold up rather well
anyways. This is particularly true in the consumer market, as
spending remains elevated, and growth levels are high in a number
of key corners of the sector.
In particular, smaller companies that have a U.S. focus remain
well-positioned for the weeks and months ahead. That is because
the global markets continue to crumble in the face of a strong
dollar, while the American market continues to look relatively
favorable in comparison.
One such company that is a great example of this trend and is
looking good for the summer months is
. The firm continues to grow at a robust pace, and it finds
itself in a very strong corner of the stock market as well.
SODA in Focus
SodaStream has burst onto the scene as an alternative for
consumers in the carbonated beverage market. SODA's main product
allows consumers to make their own carbonated beverages at home
with a variety of different flavors.
This idea has really caught on lately, as sales for SODA
continue to surge. In fact, current EPS growth rates come in
above 20% for the current year, and are quickly approaching 30%
for the next year as well. The impressive growth rate helps to
keep the PEG below one, suggesting that even with a PE
approaching 28, SODA is a decent value.
This is especially true when one considers the many growth
avenues available to SODA. The firm recently partnered with
Whirlpool's KitchenAid division
to give consumers a new option this holiday season, while the
company has also partnered with Samsung on refrigerators,
suggesting a pretty bright future.
Additionally, the company has seen its analyst become even
more bullish on the firm lately, boosting their estimates for the
firm's earnings. Currently, revisions upward outnumber downward
revisions by a ratio of about 4 to 1, while not a single estimate
has gone lower for the next year period in the past 90 days.
This has helped to push the consensus higher for SODA, across
all time periods studied. Additionally, the most accurate
consensus has moved sharply higher lately for the current
quarter, suggesting that SODA could be poised to beat earnings
this quarter as well.
Given this optimism, it shouldn't be too surprising to learn
that SODA has earned a top Zacks Rank #1 (Strong Buy). This
represents an upgrade from just one week ago, meaning that now
could be the time to get in on this surging growth story which
looks to continue its outperformance.
The overall market might be weak right now, but the consumer
is holding up nicely. This is especially true in the domestic
market, as the American consumer appears well-positioned when
compared to its global peers.
In this type of environment, SODA appears to be an excellent
play. The company sees impressive earnings growth for the current
and next year periods, and with a number of new avenues to grow
profits, SODA could remain a winner for months to come as
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SODASTREAM INTL (SODA): Free Stock Analysis
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