Trade-Ideas: Hain Celestial Group (HAIN) Is Today's Post-Market Laggard Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Hain Celestial Group (HAIN) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Hain Celestial Group as such a stock due to the following factors:
- HAIN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $57.8 million.
- HAIN is down 2.9% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in HAIN with the Ticky from Trade-Ideas. See the FREE profile for HAIN NOW at Trade-IdeasMore details on HAIN: The Hain Celestial Group, Inc., together with its subsidiaries, manufactures, markets, distributes, and sells natural and organic products. Currently there are 10 analysts that rate Hain Celestial Group a buy, no analysts rate it a sell, and 2 rate it a hold.The average volume for Hain Celestial Group has been 469,500 shares per day over the past 30 days. Hain Celestial Group has a market cap of $3.9 billion and is part of the services sector and wholesale industry. The stock has a beta of 0.42 and a short float of 18.3% with 9.25 days to cover.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Hain Celestial Group as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 2.6%. Since the same quarter one year prior, revenues rose by 32.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.00, which illustrates the ability to avoid short-term cash problems.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Food Products industry average. The net income increased by 10.9% when compared to the same quarter one year prior, going from $23.39 million to $25.93 million.
- HAIN CELESTIAL GROUP INC's earnings per share declined by 31.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HAIN CELESTIAL GROUP INC increased its bottom line by earning $2.50 versus $2.05 in the prior year. This year, the market expects an improvement in earnings ($3.00 versus $2.50).
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Hain Celestial Group Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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