We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Can Central Garden's Pet Innovation Fuel Next Growth Phase?
Read MoreHide Full Article
Key Takeaways
Central Garden is investing in innovation and leading brands to support long-term growth and margins.
CENT's Pet segment sales rose 5%, supported by consumables strength and higher-margin product categories.
CENT introduced new pet products while maintaining market share and expanding distribution across categories.
Central Garden & Pet Company (CENT - Free Report) is continuing to invest behind its strongest brands, innovation and consumer insights. Management said that these investments are gaining traction and positioning the business to drive both growth and margin expansion. While the company remains early in this journey, it expects innovation to become a more meaningful contributor as it continues to scale a more streamlined and efficient operating model.
The Pet segment generated net sales of $477 million, up 5% year over year in the second quarter of fiscal 2026. Growth was driven by continued strength in the company's core consumables portfolio and the expected shift of Outdoor Cushions shipments from the first quarter into the second. Management highlighted healthy demand across its higher-margin dog and cat, equine and professional product lines, where innovation and execution continued to support top-line growth. The company also held overall market share while posting gains in categories including rawhide, dog treats, flea and tick, pet bird and professional products, alongside additional distribution gains across multiple categories.
CENT also advanced its innovation pipeline during the quarter by introducing new branded and private-label products designed to deepen retailer partnerships and better connect with consumers. Recent pet launches included Nylabone dog chews made with real meat and Farnam Endure Gold Killer Fly & Mosquito Control Spray for horses, further expanding the company's branded portfolio.
Overall, management believes continued investment in innovation, disciplined execution and portfolio optimization will strengthen the pet business over time. As innovation becomes a larger contributor within a more efficient operating model, the company expects these initiatives to support future growth while reinforcing retailer partnerships and expanding opportunities across its core pet categories.
The Zacks Rundown for CENT
Shares of this Zacks Rank #1 (Strong Buy) company have soared 38.9% in the past six months compared with the industry’s gain of 8%.
Image Source: Zacks Investment Research
From a valuation standpoint, CENT trades at a forward price-to-earnings ratio of 14.41, lower than the industry’s average of 15.25.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CENT’s current and next fiscal year earnings implies year-over-year growth of 5.9% and 7.3%, respectively.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks have been discussed below:
The Zacks Consensus Estimate for Ollie Bargain’s current financial-year sales and earnings indicates 12.7% and 17.1% growth from the last year, respectively. OLLI reported a trailing four-quarter average earnings surprise of 4.9%.
Phibro Animal Health Corporation (PAHC - Free Report) operates as an animal health and mineral nutrition company in the United States, Latin America and Canada, Europe, the Middle East, Africa, and the Asia Pacific. PAHC carries a Zacks Rank of 2.
The Zacks Consensus Estimate for PAHC's current fiscal-year sales and earnings implies growth of 14.8% and 47.4%, respectively, from the year-ago actuals. PAHC delivered a trailing four-quarter earnings surprise of 16.3%, on average.
Trupanion, Inc. (TRUP - Free Report) together with its subsidiaries, provides medical insurance for cats and dogs on a subscription basis in the United States, Canada, Continental Europe, and Australia. It holds a Zacks Rank #2.
The Zacks Consensus Estimate for TRUP’s current financial-year sales and earnings indicates 9.4% and 20% growth from the last year, respectively. TRUP reported a trailing four-quarter average earnings surprise of 4.9%.
View the Zacks #1 Rank List
Image: Bigstock
Can Central Garden's Pet Innovation Fuel Next Growth Phase?
Key Takeaways
Central Garden & Pet Company (CENT - Free Report) is continuing to invest behind its strongest brands, innovation and consumer insights. Management said that these investments are gaining traction and positioning the business to drive both growth and margin expansion. While the company remains early in this journey, it expects innovation to become a more meaningful contributor as it continues to scale a more streamlined and efficient operating model.
The Pet segment generated net sales of $477 million, up 5% year over year in the second quarter of fiscal 2026. Growth was driven by continued strength in the company's core consumables portfolio and the expected shift of Outdoor Cushions shipments from the first quarter into the second. Management highlighted healthy demand across its higher-margin dog and cat, equine and professional product lines, where innovation and execution continued to support top-line growth. The company also held overall market share while posting gains in categories including rawhide, dog treats, flea and tick, pet bird and professional products, alongside additional distribution gains across multiple categories.
CENT also advanced its innovation pipeline during the quarter by introducing new branded and private-label products designed to deepen retailer partnerships and better connect with consumers. Recent pet launches included Nylabone dog chews made with real meat and Farnam Endure Gold Killer Fly & Mosquito Control Spray for horses, further expanding the company's branded portfolio.
Overall, management believes continued investment in innovation, disciplined execution and portfolio optimization will strengthen the pet business over time. As innovation becomes a larger contributor within a more efficient operating model, the company expects these initiatives to support future growth while reinforcing retailer partnerships and expanding opportunities across its core pet categories.
The Zacks Rundown for CENT
Shares of this Zacks Rank #1 (Strong Buy) company have soared 38.9% in the past six months compared with the industry’s gain of 8%.
Image Source: Zacks Investment Research
From a valuation standpoint, CENT trades at a forward price-to-earnings ratio of 14.41, lower than the industry’s average of 15.25.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CENT’s current and next fiscal year earnings implies year-over-year growth of 5.9% and 7.3%, respectively.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks have been discussed below:
Ollie’s Bargain Outlet Holdings Inc. (OLLI - Free Report) is a retailer of closeout merchandise and excess inventory in the United States. It holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Ollie Bargain’s current financial-year sales and earnings indicates 12.7% and 17.1% growth from the last year, respectively. OLLI reported a trailing four-quarter average earnings surprise of 4.9%.
Phibro Animal Health Corporation (PAHC - Free Report) operates as an animal health and mineral nutrition company in the United States, Latin America and Canada, Europe, the Middle East, Africa, and the Asia Pacific. PAHC carries a Zacks Rank of 2.
The Zacks Consensus Estimate for PAHC's current fiscal-year sales and earnings implies growth of 14.8% and 47.4%, respectively, from the year-ago actuals. PAHC delivered a trailing four-quarter earnings surprise of 16.3%, on average.
Trupanion, Inc. (TRUP - Free Report) together with its subsidiaries, provides medical insurance for cats and dogs on a subscription basis in the United States, Canada, Continental Europe, and Australia. It holds a Zacks Rank #2.
The Zacks Consensus Estimate for TRUP’s current financial-year sales and earnings indicates 9.4% and 20% growth from the last year, respectively. TRUP reported a trailing four-quarter average earnings surprise of 4.9%.