Markets

SodaStream's Healthier Drive Joined by Jillian Michaels

SodaStream International Ltd.SODA has been benefiting from the growing popularity of sparkling water with the shift in consumer preference toward healthier alternatives. The carbonated drinks maker's recent partnership with fitness and nutrition expert Jillian Michaels for its upcoming national infomercial reveals its relentless efforts in this field.

The infomercial will focus on the SodaStream Fizzi sparkling water maker and the brand's new Fruit Drops natural flavor essence drink mixes. The SodaStream Fizzi starter package includes the Fizzi machine, a BPA-free 1-liter carbonating bottle and CO2 cylinder.

SodaStream's cost-effective beverage carbonation systems help consumers transform ordinary tap water into soft drinks and sparkling water. Given the current trend, SodaStream is repositioning itself to capitalize on sparkling water. The Aqua Fizz launch marks SodaStream's strategic shift from sweetened beverages toward sparkling water.

Sparkling water maker unit sales rose 35% in the last reported quarter as the compelling benefits of the company's home carbonation system are resonating with an increasing number of consumers worldwide. Evidently, the company's bottom line grew almost 73% year over year to 64 cents per share in the quarter. The significant upside underscores the benefits of its enhanced manufacturing business model accompanied by superior cost structure.

Meanwhile, shares of SodaStream have outperformed its industry year to date. The company's stock has rallied 59.4% compared with the industry's loss of 4.9%. The strong performance is backed by the company's robust earnings surprise history. The company surpassed estimates in each of the trailing four quarters, with a solid average beat of 103.93%.

Furthermore, SodaStream received two positive earnings estimate revisions for this quarter, next quarter, the current full-year, and its next fiscal year, all within the last 60 days, signaling analysts' optimism on the stock. The Zacks Consensus Estimate calls for 6.5% earnings per share growth in this quarter and 33.6% for the 2017.

Hence, consumer friendly as well as healthy approach in the food and beverage space position this Zacks Rank #3 (Hold) company well for future revenues and earnings growth.

Key Stocks to Consider

A few better-ranked stocks in the same space are Prestige Brands Holdings, Inc. PBH , Summer Infant, Inc. SUMR and Pigeon Corporation PGENY .

Prestige Brands sports a Zacks Rank #2 (Buy) and is likely to witness a rise of 11.5% in earnings. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Summer Infant, a Zacks Rank #2 stock, is expected to witness 92.9% growth in 2017 earnings.

Pigeon, also a Zacks Rank #2 stock, is expected to witness 23.8% growth in earnings this year.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SodaStream International Ltd. (SODA): Free Stock Analysis Report

Prestige Brand Holdings, Inc. (PBH): Free Stock Analysis Report

Summer Infant, Inc. (SUMR): Free Stock Analysis Report

PIGEON CORP (PGENY): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

SUMR PGENY PBH

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More