A leader in natural food and personal care product categories
with an extensive portfolio of well-known brands and strong
The Hain Celestial Group, Inc.
) is poised to surge as the economy gradually revives and the
demand for organic food increases. Over the past one year, the
stock has surged 29% and still looks promising. The long-term
earnings per share (EPS) growth rate stands at a healthy 15.1%.
If we look at the company's earnings surprise history over the
last 14 quarters, Hain Celestial has topped the Zacks Consensus
Estimate by an average of 3.9%, including an earnings surprise of
2.3% in third-quarter fiscal 2014. In the last concluded quarter,
the company posted earnings of 88 cents a share that came ahead of
the Zacks Consensus Estimate by a couple of cents and surged 22.2%
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.
For fiscal 2014, management now anticipates sales to increase by
24% and earnings per share to grow between 24% and 25%.
Hain Celestial's strategic investments coupled with continued
efforts to contain costs, increase productivity, and enhance cash
flows and margins 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
Hain Celestial, through strategic opportunities, constantly
endeavors 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
and Rudi's Organic Bakery, one of the leading organic and
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
Going forward, we believe that the company will remain focused
on 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
Hain Celestial currently holds a Zacks Rank #2 (Buy).
Other Stocks that Warrant a Look
Other better-ranked stocks worth considering include
The Kroger Co.
Inventure Foods, Inc.
), both carrying a Zacks Rank #2 (Buy).
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GENL MILLS (GIS): Free Stock Analysis Report
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INVENTURE FOODS (SNAK): Free Stock Analysis
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