In this chart of HAIN, above, we can see a three-month downtrend. Prices are below the declining 50-day simple moving average. The On-Balance-Volume (OBV) line is still pointed down, suggesting that liquidation is still the order of the day. There is a bullish divergence the last three months between the lower lows in price and the higher lows for the momentum study, but that has yet to result in anything more than a minor passing bounce.
In this longer-term view of HAIN, above, we can see the break below the key 40-week, or 200-day, moving average and that the slope of the moving average is now negative. The OBV line is in retreat, and there is no bullish divergence on this timeframe. Looking across the chart from right to left, we see the next chart support in the $45-$40 area. This support zone could be tested in the weeks ahead.
TheStreet Ratings team rates HAIN CELESTIAL GROUP INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
We rate HAIN CELESTIAL GROUP INC (HAIN) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, growth in earnings per share, good cash flow from operations and compelling growth in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 9.3%. Since the same quarter one year prior, revenues rose by 19.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.48, 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 1.34, which illustrates the ability to avoid short-term cash problems.
- HAIN CELESTIAL GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HAIN CELESTIAL GROUP INC increased its bottom line by earning $1.62 versus $1.42 in the prior year. This year, the market expects an improvement in earnings ($2.18 versus $1.62).
- Net operating cash flow has significantly increased by 84.53% to $115.31 million when compared to the same quarter last year. In addition, HAIN CELESTIAL GROUP INC has also vastly surpassed the industry average cash flow growth rate of 2.76%.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Food Products industry average, but is greater than that of the S&P 500. The net income increased by 98.9% when compared to the same quarter one year prior, rising from $35.72 million to $71.07 million.
- You can view the full analysis from the report here: HAIN