On Jan 22, 2013, Zacks Investment Research upgraded
The Hain Celestial Group Inc.
), a leader in natural food and personal care products
categories, to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
A solid return of roughly 71% in the past one year, strong
operating performance and rising Zacks Consensus Estimates
facilitated Hain Celestial to attain a Zacks Rank #1 status,
thereby offering a healthy investment opportunity for
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.
Hain Celestial constantly endeavors strategic opportunities to
expand its footprint in organic and natural products and in turn,
"Change the Way the World Eats". Its latest attempt is the
acquisition of Tilda Limited, a renowned name in Basmati rice.
Management believes that the buyout of Tilda will augment the
company's adjusted earnings by 6 cents to 10 cents a share during
the second half of fiscal-year 2014.
Earlier, the company had 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
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 2.3% to $3.09,
while for fiscal 2015 it rose 4.6% to $3.61 per share in the last
Other Stocks that Warrant a Look
Other stocks worth considering in the sector include,
Green Mountain Coffee Roasters, Inc.
ConAgra Foods, Inc.
), each carrying a Zacks Rank #2 (Buy).
CONAGRA FOODS (CAG): Free Stock Analysis
GENL MILLS (GIS): Free Stock Analysis Report
GREEN MTN COFFE (GMCR): Free Stock Analysis
HAIN CELESTIAL (HAIN): Free Stock Analysis
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