Hain Celestial Group, a manufacturer and distributor of natural and organic products, is still per-forming well, as it rides the growing U.S. trend in health-conscious shopping. Recent quarterly earnings showed continued strength, with EPS growth of 31% (beating ana¬lyst estimates by 4.4%) and sales growth of 22%, nicely wrap¬ping up a record year in revenues and profits. The stock’s strength is apparent in our proprietary Relative Strength and Accumulation/Distribution Ratings, and it is now trad¬ing just 7% off all-time highs. Right now, we see as too extended from a proper buy point to enter, a mea¬sure integral to the way we determine risk. But given its strong growth estimates, higher-trending Revenue and EPS lines (see chart), and the management’s ability to consistently acquire and integrate complementary com-panies, it is worth waiting for. If can consolidate here for at least another five weeks, we recommend getting in on strength breaking out of the range. We also see two other strong contenders in its vertical chain: United Natural Foods Inc., which accounts for about 20% of revenues, and Whole Foods Market , which accounts for about 35% of revenues.
Author: Heetae Kim
Heetae Kim is a Senior Equity Analyst at William O’Neil + Co., a registered investment advisor serving 400 top-performing institutional portfolio managers worldwide. The firm employs 150 associates in Los Angeles, New York, Boston, San Francisco, and London.
Heetae lends his expertise in growth investing to the U.S. Equities Committee and currently focuses on generating ideas for the firm’s Global Laggards product. He also covers the Americas region and the Retail sector. Heetae has also served on the Global Focus List Committee, which approves all equity recommendations for developed, emerging, and frontier markets. His deep knowledge of technical and quantitative analysis has allowed him to work extensively with alpha capture programs, generating positive alpha returns based on client-specified strategies.
Mr. Kim joined the firm in 2006, after graduating from the University of California, San Diego with a dual major in economics and political science, with an emphasis on international relations. He also holds a Series 65 license. He enjoys traveling, reading and is an avid sports fan. When time permits, he plays basketball and likes watching basketball, football, and baseball.
