The Hain Celestial Group, Inc. (HAIN - Analyst Report) is slated to report fourth-quarter fiscal 2014 results on Aug 20. In the last quarter, it posted a positive surprise of 2.3%. Let’s see how things are shaping up for this announcement.
Factors Influencing This Quarter
Hain Celestial faces strong competition in the natural and organic foods market and the personal care products segment, as more and more companies are entering this field. Moreover, the company’s customers remain sensitive to macroeconomic factors including interest rate hikes, unemployment levels and high household debt levels, which may negatively impact their disposable income, triggering a shift in focus from higher priced organic products to cheaper private label brands. This may adversely affect Hain’s top-line growth.
Our proven model does not conclusively show that Hain Celestial is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below.
Zacks ESP: Earnings ESP for Hain Celestial is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 89 cents.
Zacks Rank: Hain Celestial carries a Zacks Rank #3 (Hold). Though a favorable Zacks Rank increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements:
Chipotle Mexican Grill, Inc. (CMG - Analyst Report) has an Earnings ESP of +0.79% and a Zacks Rank #1 (Strong Buy).
Abercrombie & Fitch Co. (ANF - Analyst Report) has an Earnings ESP of +20.00% and a Zacks Rank #2 (Buy).
GameStop Corp. (GME - Analyst Report) has an Earnings ESP of +10.53% and a Zacks Rank #3.
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