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Hawkins (HWKN) Shares Rally 34% in 3 Months: What's Driving It?

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Hawkins, Inc.’s (HWKN - Free Report) shares have rallied 33.9% in the past three months. The company also outperformed the industry’s rise of 1.1% and topped the S&P 500’s 4.5% rise over the same period.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s look at the factors driving the stock’s price appreciation.

What’s Driving Hawkins?

Strong results in the fiscal first quarter and upbeat prospects in Water Treatment have contributed to the rally in HWKN’s shares. In first-quarter fiscal 2025, Hawkins' Water Treatment division experienced a robust 25% year-over-year growth, reaching $117.2 million in sales. The upside was primarily driven by additional revenues from recent acquisitions. Demonstrating its 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. The acquisition aligns with Hawkins' growth strategy in these regions, complementing its existing operations and bolstering its market presence.

The firm values the strong community relationships built by Industrial Research and is committed to enhancing them. With confidence in its diversified business model, HWKN expects continued free cash flow generation and successful execution of its growth initiatives.

The company also strengthened the Water Treatment business with the buyout of Wofford Water Service. This acquisition bolsters Hawkins' presence in the southern U.S. by expanding its customer base in Mississippi, where its Water Treatment business has been limited. This strategic move aligns with Hawkins' efforts to expand the water treatment division and accelerate its expansion in the south.

Hawkins’ results exceeded expectations in the fiscal first quarter, reporting earnings of $1.38 per share and surpassing the Zacks Consensus Estimate of $1.01. The company outperformed earnings estimates in three of the past four quarters, with an average earnings surprise of 15%.

The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $4.14 per share, suggesting year-over-year growth of 15.3%. In the past 90 days, there has been a 12.8% upward revision in the consensus estimate for the current fiscal year.

Hawkins, Inc. Price and Consensus

 

Hawkins, Inc. Price and Consensus

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

 

Zacks Rank & Other Key Picks

Hawkins currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the Basic Materials space are Newmont Corporation (NEM - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Barrick Gold Corporation (GOLD - Free Report) . Newmont sports a Zacks Rank #1, and Franco-Nevada and Barrick Gold carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Newmont’s current-year earnings is pegged at $2.82, indicating a rise of 75% from year-ago levels. The consensus estimate for NEM’s earnings has increased 16% in the past 60 days.The stock has gained nearly 31.3% in the past year.

The Zacks Consensus Estimate for FNV’s current-year earnings is pegged at $3.24. The consensus estimate for FNV’s earnings has increased by 2% in the past 60 days. FNV beat the consensus estimate in three of the last four quarters, with the average earnings surprise being 6%.

The Zacks Consensus Estimate for GOLD’s current year earnings is pegged at $1.21, indicating a year-over-year rise of 44%. GOLD’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average earnings surprise being 21.2%. The company’s shares have increased 25.5% in the past year.

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