Hawkins (HWKN) Hits 52-Week High: What's Driving the Stock?

Hawkins, Inc’s HWKN shares touched a new 52-week high of $79.12 on Apr 5 before closing at $78.16.

In the past year, the stock has surged 79.8% compared with the industry’s 24.6% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

What’s Driving Hawkins?

In the third quarter of fiscal 2024, Hawkins experienced a significant upswing in its Water Treatment division, recording a remarkable 20% year-over-year increase in sales and totaling $82 million. The upside was propelled by heightened volumes and increased selling prices across various product lines.

Demonstrating a commitment to expanding its water treatment business, Hawkins strategically acquired Industrial Research Corporation, a provider of water treatment chemicals and equipment serving central and northern Louisiana, eastern Texas and southern Arkansas. This acquisition aligns with HWKN’s growth strategy for the northern Louisiana and east Texas regions, complementing existing operations and strengthening its presence in crucial markets.

HWKN values the established community relationships held by Industrial Research and aims to maintain and enhance them. With confidence in its diversified business portfolio, Hawkins anticipates sustained generation of free cash flow and effective execution of its growth initiatives.

Regarding financial performance, Hawkins surpassed expectations in the third quarter of fiscal 2024, generating earnings of 71 cents per share and surpassing the Zacks Consensus Estimate of 61 cents. The company consistently outperformed earnings forecasts in the past four quarters, boasting an impressive average surprise of 30.6%.

The Zacks Consensus Estimate for fiscal 2024 earnings is pegged at $3.61, suggesting year-over-year growth of 26.2%. In the past 90 days, there has been a 4.3% upward revision in the consensus estimate for the current fiscal year's earnings.

Hawkins, Inc. Price and Consensus

 

Hawkins, Inc. Price and Consensus

Hawkins, Inc. price-consensus-chart | Hawkins, Inc. Quote

 

Zacks Rank & Key Picks

Hawkins currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, sporting a Zacks Rank #1 (Strong Buy), and Ecolab Inc. ECL and Innospec Inc. IOSP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat on earnings in each of the last four quarters, delivering an average surprise of 12.2%. The company’s shares have risen 84.6% in the past year.

Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL beat on earnings in each of the last four quarters, delivering an average surprise of 1.7%. The company’s shares have rallied 37.2% in the past year.

The consensus estimate for IOSP’s current fiscal year earnings is pegged at $6.72 per share, indicating a 10.3% year-over-year increase. IOSP beat on earnings in each of the last four quarters, delivering an average surprise of 10.5%. The company’s shares have risen 18.1% in the past year.

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Carpenter Technology Corporation (CRS) : Free Stock Analysis Report

Innospec Inc. (IOSP) : Free Stock Analysis Report

Hawkins, Inc. (HWKN) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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