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Hain Celestial (HAIN) Up More Than 50% in 1 Year: Will it Last?
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Shares of The Hain Celestial Group, Inc. (HAIN - Free Report) have increased 52.1% over the course of one year on gains from its robust business strategies that include transformation efforts. The transformation strategy is aimed at simplifying portfolio, identifying additional areas of productivity savings, enhancing margins, top-line growth and improving cash flow. The company is on track to simplify its business in a bid to focus on areas with higher growth potential. Hence, the natural and organic food producer has significantly outperformed the industry’s 5.8% gain and broader Consumer Staples sector’s 3.6% growth. Meanwhile, the Zacks Rank #2 (Buy) stock has also outpaced the S&P 500’s 16.6% rally.
Encouragingly, analysts are also optimistic about the company. The Zacks Consensus Estimate for earnings of $1.25 for fiscal 2021 and $1.45 for fiscal 2022 suggest year-over-year growth of more than 48% and 15%, respectively.
Let’s Delve Deeper
Hain Celestial’s robust initiatives include product innovations, marketing and optimization efforts to boost top-line growth. The company remains focused on its global strategic goals and continues to make marketing investments in key brands. Management is also on track with boosting automation capabilities in plants, rightsizing infrastructure, redesigning engineered products, and optimizing pricing.
Meanwhile, the company is on track with regard to exiting smaller and non-strategic brands to reduce supply-chain complexity and redeploy resources for bigger growth opportunities. During first-quarter fiscal 2021, the company sold its Danival business in Europe to Wessanen N.V.’s subsidiary. On May 1, 2020, it concluded the sale of the Rudi's Gluten Free Bakery and Rudi's Organic Bakery brands to an affiliate of the Promise Gluten Free.
In addition, it targets strategic acquisition opportunities, which is likely to result in incremental sales along with providing the company a strong foothold in the packaged food and grocery market. Moreover, the company is benefiting out of supply-chain productivity endeavors, higher product mix on rationalization efforts and improved overhead absorption plans.
Despite the ongoing pandemic-induced uncertainties, Hain Celestial witnessed a solid start to fiscal 2021. Its top and the bottom lines outshone the Zacks Consensus Estimate and improved year over year during first-quarter fiscal 2021. In fact, earnings surpassed the Zacks Consensus Estimate for the fifth straight quarter. While higher sales and margins fueled the bottom line, increased sales in the North America and International segments aided the top line. Margins were also impressive.
For fiscal 2021, management expects gross margin to expand. Also it expects strong double-digit growth in adjusted EBITDA along with expansion in adjusted EBITDA margins. For the second quarter of fiscal 2021, management anticipates net sales to grow in mid-single digit, at constant currency, after excluding divestitures and discontinued brands.
With all said, we expect Hain Celestial to be poised well for growth ahead, given the company’s solid initiatives.
Conagra Brands (CAG - Free Report) , also a Zacks Rank #2 stock, has an expected long-term earnings growth rate of 7%.
B&G Foods (BGS - Free Report) has delivered a trailing four-quarter average earnings surprise of 9.3% and presently has a Zacks Rank #2.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Hain Celestial (HAIN) Up More Than 50% in 1 Year: Will it Last?
Shares of The Hain Celestial Group, Inc. (HAIN - Free Report) have increased 52.1% over the course of one year on gains from its robust business strategies that include transformation efforts. The transformation strategy is aimed at simplifying portfolio, identifying additional areas of productivity savings, enhancing margins, top-line growth and improving cash flow. The company is on track to simplify its business in a bid to focus on areas with higher growth potential. Hence, the natural and organic food producer has significantly outperformed the industry’s 5.8% gain and broader Consumer Staples sector’s 3.6% growth. Meanwhile, the Zacks Rank #2 (Buy) stock has also outpaced the S&P 500’s 16.6% rally.
Encouragingly, analysts are also optimistic about the company. The Zacks Consensus Estimate for earnings of $1.25 for fiscal 2021 and $1.45 for fiscal 2022 suggest year-over-year growth of more than 48% and 15%, respectively.
Let’s Delve Deeper
Hain Celestial’s robust initiatives include product innovations, marketing and optimization efforts to boost top-line growth. The company remains focused on its global strategic goals and continues to make marketing investments in key brands. Management is also on track with boosting automation capabilities in plants, rightsizing infrastructure, redesigning engineered products, and optimizing pricing.
Meanwhile, the company is on track with regard to exiting smaller and non-strategic brands to reduce supply-chain complexity and redeploy resources for bigger growth opportunities. During first-quarter fiscal 2021, the company sold its Danival business in Europe to Wessanen N.V.’s subsidiary. On May 1, 2020, it concluded the sale of the Rudi's Gluten Free Bakery and Rudi's Organic Bakery brands to an affiliate of the Promise Gluten Free.
In addition, it targets strategic acquisition opportunities, which is likely to result in incremental sales along with providing the company a strong foothold in the packaged food and grocery market. Moreover, the company is benefiting out of supply-chain productivity endeavors, higher product mix on rationalization efforts and improved overhead absorption plans.
Despite the ongoing pandemic-induced uncertainties, Hain Celestial witnessed a solid start to fiscal 2021. Its top and the bottom lines outshone the Zacks Consensus Estimate and improved year over year during first-quarter fiscal 2021. In fact, earnings surpassed the Zacks Consensus Estimate for the fifth straight quarter. While higher sales and margins fueled the bottom line, increased sales in the North America and International segments aided the top line. Margins were also impressive.
For fiscal 2021, management expects gross margin to expand. Also it expects strong double-digit growth in adjusted EBITDA along with expansion in adjusted EBITDA margins. For the second quarter of fiscal 2021, management anticipates net sales to grow in mid-single digit, at constant currency, after excluding divestitures and discontinued brands.
With all said, we expect Hain Celestial to be poised well for growth ahead, given the company’s solid initiatives.
More Solid Food Stocks
Sysco (SYY - Free Report) has an expected long-term earnings growth rate of 11% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Conagra Brands (CAG - Free Report) , also a Zacks Rank #2 stock, has an expected long-term earnings growth rate of 7%.
B&G Foods (BGS - Free Report) has delivered a trailing four-quarter average earnings surprise of 9.3% and presently has a Zacks Rank #2.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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