Hain Celestial Group (HAIN) Flagged As Strong On High Volume

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.

Trade-Ideas LLC identified Hain Celestial Group ( HAIN) as a strong on high relative volume 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 $36.5 million.
  • HAIN has traded 345,701 shares today.
  • HAIN is trading at 4.39 times the normal volume for the stock at this time of day.
  • HAIN is trading at a new high 3.00% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on HAIN:

The Hain Celestial Group, Inc., together with its subsidiaries, manufactures, markets, distributes, and sells organic and natural products in the United States, the United Kingdom, Canada, and Europe. HAIN has a PE ratio of 49. Currently there are 9 analysts that rate Hain Celestial Group a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Hain Celestial Group has been 875,800 shares per day over the past 30 days. Hain Celestial Group has a market cap of $6.4 billion and is part of the services sector and wholesale industry. The stock has a beta of 1.20 and a short float of 8.4% with 14.38 days to cover. Shares are up 5.7% year-to-date as of the close of trading on Monday.

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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 and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 11.1%. Since the same quarter one year prior, revenues rose by 18.9%. 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, 0.54, 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 1.28, which illustrates the ability to avoid short-term cash problems.
  • Compared to its closing price of one year ago, HAIN's share price has jumped by 40.15%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • HAIN CELESTIAL GROUP INC's earnings per share declined by 14.7% 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 $1.42 versus $1.25 in the prior year. This year, the market expects an improvement in earnings ($1.88 versus $1.42).
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Food Products industry average. The net income has decreased by 5.2% when compared to the same quarter one year ago, dropping from $35.24 million to $33.39 million.

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