Have you added
The Hain Celestial Group, Inc.
) to your portfolio? If not, then this is the right time to include
this promising stock with underlying factors that are capable of
carrying the momentum further. The stock holds a Zacks Rank #1
(Strong Buy), demonstrating its inherent strength. We see this as a
solid bet for investors as the appetite for organic food is on the
A leader in natural food and personal care product categories
with an extensive portfolio of well-known brands and strong
fundamentals, Hain Celestial is poised to surge as the economy
gradually revives and the demand for organic food increases. Over
the past year, the stock has surged 35% and still holds upside
potential. The long-term earnings per share (EPS) growth rate
stands at a healthy 15.1%.
If we look at the 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 in 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 bottom-line
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 have helped it in building market
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 Ltd 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 increasing productivity and pricing efficiency. Moreover, Hain
Celestial has undertaken a number of initiatives to improve its
performance and position 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
Other Stocks That Warrant a Look
Other stocks worth considering include,
Treehouse Foods, Inc.
) sporting a Zacks Rank #1 (Strong Buy) and
The Kroger Co.
) carrying a Zacks Rank #2 (Buy).
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HAIN CELESTIAL (HAIN): Free Stock Analysis
GENL MILLS (GIS): Free Stock Analysis Report
KROGER CO (KR): Free Stock Analysis Report
TREEHOUSE FOODS (THS): Free Stock Analysis
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