A leader in natural food and personal care products categories
with an extensive portfolio of well-known brands and strong
The Hain Celestial Group Inc.
) offers a healthy investment opportunity for investors. The
stock is poised to surge as the economy gradually revives and the
appetite for organic food increases.
An Attractive Investment Prospect
Hain Celestial, which competes with
General Mills Inc.
), remains a healthy option for investors. Barring a few hiccups,
the shares have been portraying an upward trend since February
end and touched a 52-week high of $89.40 yesterday. Considering
the last traded price of $89.32 on Dec 23, the stock has amassed
a year-to-date return of roughly 58.1%. The long-term EPS growth
rate stands healthy at 11.8%.
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, integration of
acquired businesses and focus on high margin carrying brands
facilitated the 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.
Acquisitions Driving Growth
Acquisitions have played a vital part in Hain Celestial's
strategy of building market share. These acquisitions have not
only widened the company's geographical presence, but have also
provided opportunities to cross-sell products in the U.S.,
Canadian, and European markets.
The company recently acquired leading packaged grocery brands
Hartley's, Gale's Robertson's, Frank Cooper's and Sun-Pat from
Premier Foods plc. The company also acquired Ella's Kitchen Group
Limited that offers organic baby food products under
approximately 80 brands and provides them in easy to carry
Going forward, we believe that the company will be able to
mitigate the cost pressures through increased productivity and
efficient pricing. Moreover, Hain Celestial has undertaken a
number of initiatives to improve its performance and positioned
itself on the growth trajectory. The company's Stock Keeping Unit
("SKU") rationalization program has helped eliminate SKUs, which
had lower sales volume or weak margins.
Currently, Hain Celestial carries a Zacks Rank #2 (Buy). Other
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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