On Jan 2, 2014, we upgraded our recommendation on
The Hain Celestial Group Inc.
), a leader in natural food and personal care products
categories, to Outperform with a target price of $100. The stock
currently holds a Zacks Rank #2 (Buy).
Why the Upgrade?
A solid return of roughly 59% in the past one year, strong
operating performance and rising Zacks Consensus Estimates are
the major catalysts behind our bullish attitude toward Hain
Hain Celestial's strategic investments plus continued efforts
to contain costs, increase productivity, and enhance cash flows
and margins, have enabled it to deliver healthy results. The
company, which competes with
General Mills Inc.
), expects to sustain strong momentum as it remains well
positioned to capitalize on the growing global demand for organic
products through acquisitions, which has been a key strategy in
building market share.
If we look at the company's earnings surprise history over the
last 13 quarters, Hain Celestial has topped estimates by an
average of 4.1%. In the last concluded quarter, the company
posted earnings of 52 cents a share that came a penny ahead of
the Zacks Consensus Estimate and surged 26.8% year over year.
Management cited that strong top-line growth of 32.7%,
integration of acquired businesses and focus on high margin
carrying brands facilitated bottom-line growth.
Management anticipates sales in the range of $2,025 million to
$2,050 million in fiscal 2014, reflecting a year-over-year
increase of 17%. Earnings are projected in the range of $2.95 to
$3.05 per share, up 16% to 20% year-over-year.
The Zacks Consensus for fiscal 2014 increased 0.3% to $3.03,
while for fiscal 2015 it rose 1.2% to $3.49 per share in the last
Other Stocks That Warrant a Look
Other better ranked stocks worth considering include,
Green Mountain Coffee Roasters, Inc.
Harris Teeter Supermarkets, Inc.
) both carrying a Zacks Rank #2 (Buy).
GENL MILLS (GIS): Free Stock Analysis Report
GREEN MTN COFFE (GMCR): Free Stock Analysis
HAIN CELESTIAL (HAIN): Free Stock Analysis
HARRIS TEETER (HTSI): Free Stock Analysis
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