Bear of the Day: Hain Celestial (HAIN)

Today’s Bear of the Day is a stock that used to be a favorite among traders. This stock rocketed highs from a low near $15 at the start of 2019, tripling to $45 in Q1 of 2021. Everything looked great as earnings revisions kept coming in to the upside. However, a disturbing trend has popped up recently as the stock has rolled over. Those estimates have been moving in a negative direction.

Those negative earnings estimate revisions are what’s making the stock a Zacks Rank #5 (Strong Sell). I’m talking about The Hain Celestial (NASDAQ:HAIN) Group HAIN. The Hain Celestial Group, Inc. manufactures, markets, and sells organic and natural products in United States, United Kingdom, and internationally. It operates through two segments, North America and International. The company offers infant formula; infant, toddler, and kids' food; plant-based beverages and frozen desserts, such as soy, rice, oat, almond, and coconut; and condiments. It also provides cooking and culinary oils; cereal bars; canned, chilled fresh, aseptic, and instant soups; yogurts, chilis, chocolate, and nut butters; and juices.

Over the last thirty days, analysts have cut their estimates for the current year and next year. Those negative revisions have cut our Zacks Consensus Estimate dramatically. Current year consensus estimates have come down from $1.65 to $1.58 while next year’s number is off from $1.94 to $1.78. Part of the reason for the bearish move is a reaction to the most recent quarterly earnings report wher4e the company missed expectations on the EPS side by a penny.

Still, there is earnings growth for the company, bringing about some potential positivity. Current year EPS estimates call for 8.97% growth for this year and 12.53% for next year. That could mean that the end of the negative revisions is right around the corner and the stock is due for a bounce. It has come down to the $37 handle from $45.

The Food – Miscellaneous industry ranks in the Bottom 30% of our Zacks Industry Rank. Despite Hain’s negative rating, there are several stocks in the same industry which are in the good graces of our Zacks Rank. Those stocks include Darling Ingredients (NYSE:DAR) DAR and J&J Snack Foods JJSF. Both of these stocks are Zacks Rank #1 (Strong Buy) stocks.

Zacks’ Top Picks to Cash in on Artificial Intelligence

This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.