Investors want to load their portfolio with stocks boasting promising returns and a track record of better-than-expected results, and Central Garden & Pet Company (CENT - Free Report) is one such pick satisfying these criteria. Notably, the stock yielded a substantial return of over 93% year to date, and has a long-term earnings growth rate of 10% with a VGM Score of “A”. Moreover, its share price is currently hovering close to its 52-week high of $27.89.
Central Garden & Pet is revamping both its Pet and Garden segments to have a balanced approach that encompasses revenue growth as well as cost reduction. Also, the company intends to launch several products that would appeal to consumers, along with improving its customer service. Further, it is likely to gain market share in the home centers, mass market, grocery, specialty pet store and other independent channels.
Being the leading producer of garden and pet supplies products in the U.S. with a diversified portfolio of brands has helped Central Garden & Pet develop healthy commercial relationships with retail giants like Wal-Mart Stores Inc. (WMT - Free Report) , The Home Depot, Inc. (HD - Free Report) and Lowe's Companies, Inc. (LOW - Free Report) . We believe this provides the company with significant opportunity to drive growth.
We also note that organic growth, value accretive acquisitions such as that of the pet bedding business, and divestment of non-strategic assets have been aiding Central Garden & Pet’s performance. These initiatives have helped the company to post better-than-expected earnings for the eighth straight quarter, when it reported third-quarter fiscal 2016 results. Also, its top line surpassed the Zacks Consensus Estimate, thus marking the fifth successive quarter of revenue beat.
However, stiff competition and seasonality of the garden business, which is limited to the period between spring to summer, remain concerns for the company. Moreover, the decline in consumers’ discretionary spending may also hurt results.
Given the pros and cons embedded in the stock, Central Garden & Pet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Investors want to load their portfolio with stocks boasting promising returns and a track record of better-than-expected results, and Central Garden & Pet Company (CENT - Free Report) is one such pick satisfying these criteria. Notably, the stock yielded a substantial return of over 93% year to date, and has a long-term earnings growth rate of 10% with a VGM Score of “A”. Moreover, its share price is currently hovering close to its 52-week high of $27.89.
Central Garden & Pet is revamping both its Pet and Garden segments to have a balanced approach that encompasses revenue growth as well as cost reduction. Also, the company intends to launch several products that would appeal to consumers, along with improving its customer service. Further, it is likely to gain market share in the home centers, mass market, grocery, specialty pet store and other independent channels.
Being the leading producer of garden and pet supplies products in the U.S. with a diversified portfolio of brands has helped Central Garden & Pet develop healthy commercial relationships with retail giants like Wal-Mart Stores Inc. (WMT - Free Report) , The Home Depot, Inc. (HD - Free Report) and Lowe's Companies, Inc. (LOW - Free Report) . We believe this provides the company with significant opportunity to drive growth.
We also note that organic growth, value accretive acquisitions such as that of the pet bedding business, and divestment of non-strategic assets have been aiding Central Garden & Pet’s performance. These initiatives have helped the company to post better-than-expected earnings for the eighth straight quarter, when it reported third-quarter fiscal 2016 results. Also, its top line surpassed the Zacks Consensus Estimate, thus marking the fifth successive quarter of revenue beat.
However, stiff competition and seasonality of the garden business, which is limited to the period between spring to summer, remain concerns for the company. Moreover, the decline in consumers’ discretionary spending may also hurt results.
Given the pros and cons embedded in the stock, Central Garden & Pet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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