Zacks Investment Research upgraded
The Hain Celestial Group, Inc.
) to a Zacks Rank #1 (Strong Buy) on Jun 24, 2014, following the
company's better-than-expected financial results for third-quarter
Why the Upgrade?
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.
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 strong top-line growth,
integration of acquired businesses and focus on high margin
carrying brands as factors that facilitated 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 by remaining 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 recent
acquisitions are that of Tilda Limited, a renowned name in Basmati
rice, and Rudi's Organic Bakery, one of the leading organic and
Strong results and the upbeat guidance triggered an uptrend in
the Zacks Consensus Estimate, depicting analysts' confidence in the
stock. This is evident from the movement witnessed in the Zacks
Consensus Estimate, which increased 1.9% to $3.17 for fiscal 2014
and 2.2% to $3.70 for fiscal 2015 in the past 60 days.
Other Stocks to Consider
Other better-ranked stocks worth considering include,
Treehouse Foods, Inc.
Inventure Foods, Inc.
), both carrying a Zacks Rank #2 (Buy).
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HAIN CELESTIAL (HAIN): Free Stock Analysis
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TREEHOUSE FOODS (THS): Free Stock Analysis
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