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Hawkins (HWKN) Shares Scale 52-week High: What's Driving It?

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Hawkins, Inc.’s (HWKN - Free Report) shares reached a fresh 52-week high of $123.87 on Aug 22 before closing at $121.22.

In the past year, the stock has appreciated 110.2% against the industry’s 9.3% decline in the same period.

Zacks Investment Research
Image Source: Zacks Investment Research

What’s Driving Hawkins?

HWKN’s shares rallied on the back of strong results in the fiscal first quarter and a positive outlook for its Water Treatment division. In first-quarter fiscal 2025, the company reported a solid 25% year-over-year sales growth in the Water Treatment segment, reaching $117.2 million. The upside was largely fueled by additional revenues from recent acquisitions.

Demonstrating its commitment to expanding its water treatment business, Hawkins acquired Industrial Research Corporation, a provider of water treatment chemicals and equipment serving central and northern Louisiana, eastern Texas, and southern Arkansas. The acquisition aligns with Hawkins’ growth strategy in these regions, complementing its existing operations and enhancing its market presence. The company also values the strong community relationships established by Industrial Research and is focused on maintaining and strengthening them.

Hawkins bolstered its Water Treatment business with the acquisition of Wofford Water Service, which extends its reach in Mississippi. This strategic move supports the company’s expansion in the southern U.S., a key region where its Water Treatment business had been limited.

The company’s fiscal first-quarter results exceeded expectations, with earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.01. The company outperformed earnings estimates in three of the past four quarters, with an average earnings surprise of 15%. The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $4.14 per share, indicating a 15.3% year-over-year growth. In the past 90 days, the estimate for the current fiscal year has seen a 15% upward revision.

Hawkins, Inc. Price and Consensus

 

Hawkins, Inc. Price and Consensus

Hawkins, Inc. price-consensus-chart | Hawkins, Inc. Quote

 

Zacks Rank & Other Key Picks

Hawkins currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the Basic Materials space are Newmont Corporation (NEM - Free Report) , Element Solutions Inc (ESI - Free Report) and Barrick Gold Corporation (GOLD - Free Report) . Newmont and Element Solutions sport a Zacks Rank #1, while Barrick Gold carries a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Newmont’s current-year earnings is pegged at $2.82, indicating a rise of 75% from the year-ago levels. The consensus for NEM’s earnings has increased 16% in the past 60 days.The stock has gained nearly 31.6% in the past year.

The Zacks Consensus Estimate for ESI’s current-year earnings is pegged at $1.42, indicating a rise of 10% from the year-ago levels. ESI’s earnings beat the consensus estimate in three of the last four quarters, with the average surprise being 3.8%. The stock has rallied nearly 28.8% in the past year.

The Zacks Consensus Estimate for GOLD’s current year earnings is pegged at $1.21, indicating a year-over-year rise of 44%. GOLD’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average surprise being 21.2%. The company’s shares have increased 26.7% in the past year.

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