We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hawkins, Inc. (HWKN) Hit a 52 Week High, Can the Run Continue?
Read MoreHide Full Article
Shares of Hawkins (HWKN - Free Report) have been strong performers lately, with the stock up 11.4% over the past month. The stock hit a new 52-week high of $74.77 in the previous session. Hawkins has gained 5.1% since the start of the year compared to the -0.9% move for the Zacks Basic Materials sector and the 10.4% return for the Zacks Chemical - Specialty industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 31, 2024, Hawkins reported EPS of $0.71 versus consensus estimate of $0.61.
For the current fiscal year, Hawkins is expected to post earnings of $3.61 per share on $913.63 million in revenues. This represents a 26.22% change in EPS on a -2.3% change in revenues. For the next fiscal year, the company is expected to earn $3.66 per share on $984.42 million in revenues. This represents a year-over-year change of 1.39% and 7.75%, respectively.
Valuation Metrics
Hawkins may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Hawkins has a Value Score of C. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 20.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 18X. On a trailing cash flow basis, the stock currently trades at 17.8X versus its peer group's average of 11.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Hawkins currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Hawkins fits the bill. Thus, it seems as though Hawkins shares could still be poised for more gains ahead.
How Does HWKN Stack Up to the Competition?
Shares of HWKN have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Mativ Holdings, Inc. (MATV - Free Report) . MATV has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Mativ Holdings, Inc. beat our consensus estimate by 43.75%, and for the current fiscal year, MATV is expected to post earnings of $1.50 per share on revenue of $2.14 billion.
Shares of Mativ Holdings, Inc. have gained 49.3% over the past month, and currently trade at a forward P/E of 12.07X and a P/CF of 1.63X.
The Chemical - Specialty industry is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for HWKN and MATV, even beyond their own solid fundamental situation.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Hawkins, Inc. (HWKN) Hit a 52 Week High, Can the Run Continue?
Shares of Hawkins (HWKN - Free Report) have been strong performers lately, with the stock up 11.4% over the past month. The stock hit a new 52-week high of $74.77 in the previous session. Hawkins has gained 5.1% since the start of the year compared to the -0.9% move for the Zacks Basic Materials sector and the 10.4% return for the Zacks Chemical - Specialty industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 31, 2024, Hawkins reported EPS of $0.71 versus consensus estimate of $0.61.
For the current fiscal year, Hawkins is expected to post earnings of $3.61 per share on $913.63 million in revenues. This represents a 26.22% change in EPS on a -2.3% change in revenues. For the next fiscal year, the company is expected to earn $3.66 per share on $984.42 million in revenues. This represents a year-over-year change of 1.39% and 7.75%, respectively.
Valuation Metrics
Hawkins may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Hawkins has a Value Score of C. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 20.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 18X. On a trailing cash flow basis, the stock currently trades at 17.8X versus its peer group's average of 11.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Hawkins currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Hawkins fits the bill. Thus, it seems as though Hawkins shares could still be poised for more gains ahead.
How Does HWKN Stack Up to the Competition?
Shares of HWKN have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Mativ Holdings, Inc. (MATV - Free Report) . MATV has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Mativ Holdings, Inc. beat our consensus estimate by 43.75%, and for the current fiscal year, MATV is expected to post earnings of $1.50 per share on revenue of $2.14 billion.
Shares of Mativ Holdings, Inc. have gained 49.3% over the past month, and currently trade at a forward P/E of 12.07X and a P/CF of 1.63X.
The Chemical - Specialty industry is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for HWKN and MATV, even beyond their own solid fundamental situation.