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Is Hain Celestial (HAIN) All Set to Draw Investors' Attention?

A leader in the natural food and personal care product categories, with an extensive portfolio of well-known brands and strong fundamentals, The Hain Celestial Group, Inc.HAIN is poised for a surge as the economy gradually revives and the demand for organic food increases. Hain Celestial's strategic investments, along with its continued efforts to contain costs, boost productivity and enhance cash flows and margins, enable it to deliver encouraging results. Further, its long-term earnings per share growth rate stands at a healthy 13.3%.

The company's fourth-quarter fiscal 2015 results inspire optimism as both the top and bottom lines advanced 20% and 22%, respectively, on the back of a rise in consumption, innovative marketing and expanded distribution, as well as acquisitions. As a result, management provided an upbeat guidance for fiscal 2016. Management now projects sales growth of 10%-15% and earnings per share to increase by 12%-20% for the fiscal.

However, we observed that the rate of sales growth of 20% and 18.9% registered during the fourth and third quarters of fiscal 2015 decelerated sharply from 30.2% and 32.2%, recorded in the second and first quarters of the fiscal year, respectively. Moreover, the company posted in line results for the second quarter in a row, following four straight quarters of earnings beat.

Nevertheless, Hain Celestial, through strategic opportunities, constantly strives to expand its footprint in the organic and natural products category in order to offer "A Healthier Way of Life."

Its latest step toward this end is the acquisition of Mona Group, one of the leading plant-based food and beverage companies. Last year, the company acquired Basmati rice producer, Tilda Limited and Colorado-based Rudi's Organic Bakery, known for its organic and gluten-free products.

Going forward, we believe that the company will remain focused on higher productivity and efficient pricing. Moreover, Hain Celestial has undertaken a number of initiatives to improve its performance and has thus positioned itself on the growth trajectory. The company's Stock Keeping Unit ("SKU") rationalization program has helped in eliminating SKUs which had lower sales volumes or weak margins.

Hain Celestial currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Investors may consider better-ranked stocks such as The Kroger Co. KR , Boulder Brands, Inc. BDBD and Flowers Foods, Inc. FLO , all carrying a Zacks Rank #2 (Buy).

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KROGER CO (KR): Free Stock Analysis Report

HAIN CELESTIAL (HAIN): Free Stock Analysis Report

BOULDER BRANDS (BDBD): 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.


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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