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Have you added The Hain Celestial Group, Inc. (HAIN - Analyst Report) to your portfolio? If not, then this is the right time to include this promising stock with underlying factors that are capable of carrying the momentum further. The stock holds a Zacks Rank #1 (Strong Buy), demonstrating its inherent strength. We see this as a solid bet for investors as the appetite for organic food is on the rise. 

A leader in natural food and personal care product categories with an extensive portfolio of well-known brands and strong fundamentals, Hain Celestial is poised to surge as the economy gradually revives and the demand for organic food increases. Over the past year, the stock has surged 35% and still holds upside potential. The long-term earnings per share (EPS) growth rate stands at a healthy 15.1%.

If we look at the earnings surprise history over the last 14 quarters, Hain Celestial has topped The Zacks Consensus Estimate by an average of 3.9%, including an earnings surprise of 2.3% in third-quarter fiscal 2014.

In the last concluded quarter, the company posted earnings of 88 cents a share that came in ahead of the Zacks Consensus Estimate by a couple of cents and surged 22.2% year over year. Management cited that strong top-line growth, integration of acquired businesses and focus on high margin carrying brands facilitated bottom-line growth.

For fiscal 2014, management now anticipates sales to increase by 24% and earnings per share to grow between 24% and 25%.

Hain Celestial’s strategic investments coupled with continued efforts to contain costs, increase productivity, and enhance cash flows and margins enabled it to deliver healthy results. The company, which competes with General Mills Inc. (GIS - Analyst Report), expects to sustain strong momentum as it remains well positioned to capitalize on the growing global demand for organic products through acquisitions, which have helped it in building market share.

Hain Celestial, through strategic opportunities, constantly endeavors to expand its footprint in organic and natural products and in turn, “Change the Way the World Eats.” Its latest attempt is the acquisition of Tilda Limited, a renowned name in Basmati rice and Rudi's Organic Bakery, one of the leading organic and gluten-free companies.

Earlier, the company had acquired leading packaged grocery brands -- Hartley's, Gale's, Robertson's, Frank Cooper's and Sun-Pat -- from Premier Foods plc. The company also acquired Ella's Kitchen Group Ltd that offers organic baby food products under approximately 80 brands and provides them in easy-to-carry pouches.

Going forward, we believe that the company will remain focused on increasing productivity and pricing efficiency. Moreover, Hain Celestial has undertaken a number of initiatives to improve its performance and position itself on the growth trajectory. The company’s Stock Keeping Unit (SKU) rationalization program has helped eliminate SKUs, which had lower sales volume or weak margins.

Other Stocks That Warrant a Look

Other stocks worth considering include, Treehouse Foods, Inc. (THS - Snapshot Report) sporting a Zacks Rank #1 (Strong Buy) and The Kroger Co. (KR - Analyst Report) carrying a Zacks Rank #2 (Buy).

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