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Here's Why You Should Add Hawkins (HWKN) to Your Portfolio
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Hawkins, Inc (HWKN - Free Report) experienced a 22.6% increase in its stock value in the past six months, primarily driven by its solid fiscal third-quarter earnings performance that exceeded expectations.
The stock offers an attractive investment opportunity with strong growth prospects. HWKN carries a Zacks Rank #2 (Buy).
In the third quarter of fiscal 2024, Hawkins exceeded expectations by reporting earnings of 71 cents per share, surpassing the Zacks Consensus Estimate of 61 cents. The company exceeded earnings forecasts in each of the past four quarters, showcasing an impressive average surprise of 30.6%.
Healthy Growth Potential
The Zacks Consensus Estimate for fiscal 2024 earnings is currently pegged at $3.61, suggesting year-over-year growth of 26.2%. The consensus estimate for the current fiscal year earnings has also been revised upward by 4.3% in the past 60 days.
An Outperformer
HWKN’s shares have moved up 70.1% in a year compared with the industry’s rise of 29.5% in the same period.
Image Source: Zacks Investment Research
Strategic Expansion in Water Treatment Bodes Well
Hawkins' Water Treatment segment experienced an impressive 20% year-over-year increase in sales, reaching $82 million in the third quarter of fiscal 2024. Higher selling prices and increased volumes across several product lines fueled the upside.
Demonstrating its commitment to expanding its water treatment business, Hawkins strategically acquired Industrial Research Corporation, which provides water treatment chemicals and equipment in central and northern Louisiana, eastern Texas and southern Arkansas. The acquisition aligns with its growth strategy for northern Louisiana and east Texas. It complements Hawkins' existing operations and strengthens its presence in key markets.
Moreover, Hawkins values the established relationships Industrial Research has within the local community and intends to maintain and build upon them. Hawkins is optimistic about its diverse business portfolio's ability to continue generating free cash flow and effectively executing its growth initiatives.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 12.2%. The company’s shares have increased 41.6% in the past year.
Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company’s shares have rallied 39.2% in the past year.
The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. AMR delivered a trailing four-quarter earnings surprise of roughly 24.8%, on average. AMR shares are up around 96.7% in a year.
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Here's Why You Should Add Hawkins (HWKN) to Your Portfolio
Hawkins, Inc (HWKN - Free Report) experienced a 22.6% increase in its stock value in the past six months, primarily driven by its solid fiscal third-quarter earnings performance that exceeded expectations.
The stock offers an attractive investment opportunity with strong growth prospects. HWKN carries a Zacks Rank #2 (Buy).
Hawkins, Inc. Price and Consensus
Hawkins, Inc. price-consensus-chart | Hawkins, Inc. Quote
Positive Earnings Surprise History
In the third quarter of fiscal 2024, Hawkins exceeded expectations by reporting earnings of 71 cents per share, surpassing the Zacks Consensus Estimate of 61 cents. The company exceeded earnings forecasts in each of the past four quarters, showcasing an impressive average surprise of 30.6%.
Healthy Growth Potential
The Zacks Consensus Estimate for fiscal 2024 earnings is currently pegged at $3.61, suggesting year-over-year growth of 26.2%. The consensus estimate for the current fiscal year earnings has also been revised upward by 4.3% in the past 60 days.
An Outperformer
HWKN’s shares have moved up 70.1% in a year compared with the industry’s rise of 29.5% in the same period.
Image Source: Zacks Investment Research
Strategic Expansion in Water Treatment Bodes Well
Hawkins' Water Treatment segment experienced an impressive 20% year-over-year increase in sales, reaching $82 million in the third quarter of fiscal 2024. Higher selling prices and increased volumes across several product lines fueled the upside.
Demonstrating its commitment to expanding its water treatment business, Hawkins strategically acquired Industrial Research Corporation, which provides water treatment chemicals and equipment in central and northern Louisiana, eastern Texas and southern Arkansas. The acquisition aligns with its growth strategy for northern Louisiana and east Texas. It complements Hawkins' existing operations and strengthens its presence in key markets.
Moreover, Hawkins values the established relationships Industrial Research has within the local community and intends to maintain and build upon them. Hawkins is optimistic about its diverse business portfolio's ability to continue generating free cash flow and effectively executing its growth initiatives.
Other Key Picks
Other top-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Ecolab Inc. (ECL - Free Report) and Alpha Metallurgical Resources Inc. (AMR - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 12.2%. The company’s shares have increased 41.6% in the past year.
Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company’s shares have rallied 39.2% in the past year.
The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. AMR delivered a trailing four-quarter earnings surprise of roughly 24.8%, on average. AMR shares are up around 96.7% in a year.