The coronavirus pandemic has brought many changes in our daily lifestyle, including dining habits. At-home cooking is being widely adopted due to restricted travelling, social distancing and stay-at-home norms. Such trends have turned out to be quite an upside for food products companies like
The Hain Celestial Group, Inc. ( HAIN Quick Quote HAIN - Free Report) . The company is witnessing top-line growth, owing to strong brand penetration across households. Moreover, the company’s investments to boost assortments and optimize operating infrastructure are yielding. We expect such upsides to continue favoring this Zacks Rank #2 (Buy) company. Markedly, the Zacks Consensus Estimate for fiscal 2021 sales and earnings reflects an increase of 1.6% and 51.2% year on year, respectively. Notably, Hain Celestial’s shares have gained 10.6% in the past three months compared with the industry’s growth of 5.1%. That said, let’s take a closer look at the aspects aiding gleam to this well-known natural and organic food products player. Strategic Growth Endeavors
Hain Celestial is gaining from sales growth across the North America and the International segments. In North America, the company’s Get Bigger Brands have been doing well. Markedly, the company has been witnessing increase in consumption of products like tea, yoghurt and snacks alongside personal care products. The company’s international segment is witnessing growth in areas like non-diary beverages and plant-based protein.
Encouraged by the market trends, the company continues to invest in boosting brand offerings. It is focusing on innovations, particularly in the Get Bigger portfolio. Apart from these, the company is engaged in prudent market activities to strengthen brand penetration. Moreover, the company’s well-chalked acquisitions have contributed toward building a healthy portfolio. Additionally, Hain Celestial is progressing well with its transformation strategy to boost margins. The transformation strategy is aimed at simplifying portfolio, identifying areas of productivity savings and improving cash flow. It is also focused on boosting automation capabilities in plants for lowering costs and optimizing operating infrastructure. Furthermore, Hain Celestial is on track to simplify its business and focus on areas with higher growth potential. In fact, by exiting smaller and non-strategic brands, the company is able to reduce supply-chain complexity and redeploy resources on bigger growth opportunities. In this context the company divested Danival business in Europe, Rudi's Gluten Free Bakery and Rudi's Organic Bakery brands among others. Wrapping Up
Industry experts believe that at-home dining trends are likely to continue in 2021, as consumers have begun realizing the health benefits of cooking and dining at home. This is likely to keep matters bright for players in the food space. Such upsides along with Hain Celestial’s prudent efforts to boost brand strength are likely to keep the stock soaring in the forthcoming periods.
Looking for Solid Food Stocks? Check These Medifast, Inc. ( MED Quick Quote MED - Free Report) , carrying a Zacks Rank #2 (Buy), has a trailing four-quarter earnings surprise of 20.2%, on average. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Sysco Corporation ( SYY Quick Quote SYY - Free Report) , also with a Zacks Rank of 2, has a long-term earnings growth rate of 11%. B&G Foods, Inc. ( BGS Quick Quote BGS - Free Report) , has a Zacks Rank #2, and a trailing four-quarter earnings surprise of 9.3%, on average. Breakout Biotech Stocks with Triple-Digit Profit Potential
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