Zacks Investment Research upgraded
SodaStream International Ltd.
) to a Zacks Rank #1 (Strong Buy) on Jan 26. An impressive
outlook, solid fundamentals and innovative products are the rank
drivers for this stock.
Why the Upgrade?
SodaStream has topped earnings estimates for 8 straight
quarters and is expected to report another solid performance late
next month, owing to strong third quarter results. The potential
long-term earnings growth rate for the stock is 30.4%.
SodaStream's third quarter earnings of 80 cents per share beat
the Zacks Consensus Estimate by 17.7% and last year's result by
66.7%. Revenue of $112.5 million also increased 48.7% year over
year on the back of strong performances in both of the product
categories (soda makers and consumables) and in all four
SodaStream raised its expectation for the fourth quarter and
full year 2012 results after reporting robust third quarter
results. The company projects revenue growth of 46% for 2012, up
from the prior expectation for an increase of 40%. Net income is
expected to increase 59% year over year, compared to the earlier
guidance for growth of 55%.
Estimates have mostly increased after the strong fiscal third
quarter results and bright outlook for the upcoming quarter. The
Zacks Consensus Estimate increased 0.5% to $2.11 per share for
fiscal 2012, while it grew 0.4% to $2.67 per share for fiscal
We believe the stock has bright prospect ahead due to solid
demand for its products, strategic partnerships like that with
Kraft Foods Group, Inc.
), enhanced marketing techniques, product innovations, accretive
acquisitions and successful strategic investments.
Other Stocks to Consider
Other stocks in the diversified consumer products sector worth
), both of which hold a Zacks Rank #2 (Buy).
JARDEN CORP (JAH): Free Stock Analysis Report
KRAFT FOODS GRP (KRFT): Free Stock Analysis
NUTRI/SYSTEM (NTRI): Free Stock Analysis
SODASTREAM INTL (SODA): Free Stock Analysis
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