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Hawkins' Stock Up 30.5% in 3 Months: What's Driving the Rally?

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Key Takeaways

  • Hawkins shares jumped 30.5% in three months, outpacing its industry's performance.
  • HWKN's Water Treatment growth and acquisitions, like Industrial Research and Wofford Water, are driving gains.
  • Earnings estimates for fiscal 2026 and Q1 have risen in 60 days, reinforcing investor confidence in HWKN.

Hawkins, Inc.’s (HWKN - Free Report) shares have popped 30.5% over the past three months. The company has also outperformed the industry’s 0.7% decline and the S&P 500’s roughly 6.3% increase over the same period.

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Image Source: Zacks Investment Research

Let’s take a look at the factors that are driving this stock.

What’s Aiding HWKN Stock?

Hawkins' Water Treatment division is rapidly growing, demonstrating the company's strategic focus on the water treatment industry and the successful integration of recent acquisitions. In the fiscal fourth quarter, its revenues grew 10% year over year to a record $245.3 million, boosted by a 21% increase in Water Treatment unit sales.

Hawkins' acquisition of Industrial Research Corporation aligns with its growth strategy in central and northern Louisiana, eastern Texas and southern Arkansas, complementing existing operations and enhancing market presence. The Wofford Water Service acquisition also strengthened HWKN's foothold in Mississippi and facilitated its expansion into the southern United States, where its Water Treatment business had previously been limited. The Amerochem assets and WaterSurplus acquisitions increased its Water Treatment presence. HWKN's cautious pricing strategy for combating cost inflation is also supporting performance. Furthermore, it remains committed to increasing shareholder value.

The Zacks Consensus Estimate for HWKN's fiscal 2026 and fiscal first quarter has risen 2.6% and 3.1%, respectively, in the past 60 days. The favorable estimate revisions boost investor confidence in the company. 

Hawkins' Zacks Consensus Estimate for earnings in fiscal 2026 is $4.37 per share, implying 8.4% year-over-year growth.

HWKN’s Rank & Key Picks

HWKN currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Centrus Energy Corp. (LEU - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 157.7% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Centrus Energy's current-year earnings is pegged at 71 cents. LEU, carrying a Zacks Rank #1, surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, with an average earnings surprise of 272.7%. The company's shares have rallied 333.9% in the past year.

Avino Silver, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 104.1%, on average. ASM's shares have rallied 271.5% in the past year.

 

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