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Hawkins' Shares Jump 60% in Six Months: What's Driving the Stock?
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Hawkins, Inc.’s (HWKN - Free Report) shares have surged 59.5% in the past six months against the industry’s decline of 24.1%. The S&P 500 rose 9.1% during the said time frame.
Image Source: Zacks Investment Research
Let’s look at the factors driving the stock’s price appreciation.
What’s Driving Hawkins?
HWKN’s shares rallied on the back of strong fiscal first-quarter results and a positive outlook for its Water Treatment division. In first-quarter fiscal 2025, the company reported a solid 25% year-over-year sales growth in the Water Treatment segment, reaching $117.2 million. The upside was largely fueled by additional revenues from recent acquisitions.
HWKN demonstrates its commitment to expanding the company’s water treatment business. It 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 Hawkins’ growth strategy in these regions, complementing the company’s existing operations and enhancing its market presence. HWKN also values the strong community relationships established by Industrial Research and is focused on maintaining and strengthening them.
The company bolstered its Water Treatment business with the acquisition of Wofford Water Service, which extends its reach in Mississippi. This strategic move supports HWKN's expansion in the southern United States, a key region where its Water Treatment business had been limited.
Hawkins' fiscal first-quarter results exceeded expectations, with earnings of $1.38 per share beating the Zacks Consensus Estimate of $1.01. HWKN beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 15%. The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $4.14 per share, indicating 15.3% year-over-year growth. In the past 90 days, the bottom-line estimate for the current fiscal year has seen a 15% upward revision.
The Zacks Consensus Estimate for Carpenter Technology’s current year earnings is pegged at $6.06 per share, indicating a rise of 27.9% from the year-ago level. CRS’ earnings beat the consensus estimate in each of the trailing four quarters, the average earnings surprise being 15.9%. The stock has surged nearly 110.4% in the past year.
The Zacks Consensus Estimate for Eldorado Gold’s current year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO beat the consensus estimate in each of the trailing four quarters, with the average surprise being 430.3%. The company's shares have surged nearly 77.6% in the past year.
The Zacks Consensus Estimate for Axalta's current year earnings is pegged at $2.07, indicating a rise of 31.9% from the year-ago level. The Zacks Consensus Estimate for AXTA’s current year earnings has increased 4.5% in the past 60 days.The stock has rallied around 27.3% in the past year.
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Hawkins' Shares Jump 60% in Six Months: What's Driving the Stock?
Hawkins, Inc.’s (HWKN - Free Report) shares have surged 59.5% in the past six months against the industry’s decline of 24.1%. The S&P 500 rose 9.1% during the said time frame.
Image Source: Zacks Investment Research
Let’s look at the factors driving the stock’s price appreciation.
What’s Driving Hawkins?
HWKN’s shares rallied on the back of strong fiscal first-quarter results and a positive outlook for its Water Treatment division. In first-quarter fiscal 2025, the company reported a solid 25% year-over-year sales growth in the Water Treatment segment, reaching $117.2 million. The upside was largely fueled by additional revenues from recent acquisitions.
HWKN demonstrates its commitment to expanding the company’s water treatment business. It 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 Hawkins’ growth strategy in these regions, complementing the company’s existing operations and enhancing its market presence. HWKN also values the strong community relationships established by Industrial Research and is focused on maintaining and strengthening them.
The company bolstered its Water Treatment business with the acquisition of Wofford Water Service, which extends its reach in Mississippi. This strategic move supports HWKN's expansion in the southern United States, a key region where its Water Treatment business had been limited.
Hawkins' fiscal first-quarter results exceeded expectations, with earnings of $1.38 per share beating the Zacks Consensus Estimate of $1.01. HWKN beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 15%. The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $4.14 per share, indicating 15.3% year-over-year growth. In the past 90 days, the bottom-line estimate for the current fiscal year has seen a 15% upward revision.
Hawkins, Inc. Price and Consensus
Hawkins, Inc. price-consensus-chart | Hawkins, Inc. Quote
HWKN’s 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 Carpenter Technology Corporation (CRS - Free Report) and Eldorado Gold Corporation (EGO - Free Report) , each currently sporting a Zacks Rank #1, and Axalta Coating Systems Ltd. (AXTA - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Carpenter Technology’s current year earnings is pegged at $6.06 per share, indicating a rise of 27.9% from the year-ago level. CRS’ earnings beat the consensus estimate in each of the trailing four quarters, the average earnings surprise being 15.9%. The stock has surged nearly 110.4% in the past year.
The Zacks Consensus Estimate for Eldorado Gold’s current year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO beat the consensus estimate in each of the trailing four quarters, with the average surprise being 430.3%. The company's shares have surged nearly 77.6% in the past year.
The Zacks Consensus Estimate for Axalta's current year earnings is pegged at $2.07, indicating a rise of 31.9% from the year-ago level. The Zacks Consensus Estimate for AXTA’s current year earnings has increased 4.5% in the past 60 days.The stock has rallied around 27.3% in the past year.