Welcome!

News Feed Item

The Zacks Analyst Blog Highlights:Starbucks, Hain Celestial Group, General Mills, Green Mountain Coffee Roasters and ConAgra Foods

CHICAGO, Jan. 24, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Starbucks Corp (Nasdaq:SBUX-Free Report), Hain Celestial Group Inc. (Nasdaq:HAIN-Free Report), General Mills Inc. (NYSE:GIS-Free Report), Green Mountain Coffee Roasters, Inc. (Nasdaq:GMCR-Free Report) and ConAgra Foods, Inc. (NYSE:CAG-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday's Analyst Blog:

Starbucks Beats, but Comps Down

Starbucks Corp (Nasdaq:SBUX-Free Report) reported earnings after the bell today.  The bottom line EPS came in ahead of the Zacks Consensus Estimate by $0.02, posting an EPS of $0.71, with revenues coming in-line with Zack's expectation of $4.29 billion.  

The major item that the street was concentrating upon was domestic Comparable-Store Sales; expectations were of an increase of 6.25%, but Starbucks only posted a 5.0% growth for the quarter.  This is a decline from 8% last quarter, and 9% a year ago.  Unfortunately, CSS also decreased internationally as well, with Asia being the biggest laggard.  Management touched on the decline by stating that this most recent Holiday season saw a "seismic shift" with in-store traffic.  While the polar storm impacted in-store shoppers, management is worried this might be part of a larger overall trend away from in-store sales.  Finally, management slightly lowered Q2 guidance to $0.56.

On the positive, margins expanded 19.2% on the basis of strategic cost cutting measures by management.  Moreover, these margins were supported by stable commodity prices for the company.  

Going into the earnings announcement, Zacks had identified significant negative agreement amongst Starbuck's coverage analysts; which had been lowering their expectations for the past 30 days.  Therefore, the CSS data has not negatively impacted the overall price in afterhours trading.  Currently, the stock is up just over 1% on light volume.

Hain Celestial Now a Strong Buy

On Jan 22, 2013, Zacks Investment Research upgraded The Hain Celestial Group Inc. (Nasdaq:HAIN-Free Report), a leader in natural food and personal care products categories, to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

A solid return of roughly 71% in the past one year, strong operating performance and rising Zacks Consensus Estimates facilitated Hain Celestial to attain a Zacks Rank #1 status, thereby offering a healthy investment opportunity for investors.

Hain Celestial's strategic investments plus continued efforts to contain costs, increase productivity, and enhance cash flows and margins, have enabled it to deliver healthy results. The company, which competes with General Mills Inc. (NYSE:GIS-Free Report), expects to sustain strong momentum as it remains well positioned to capitalize on the growing global demand for organic products through acquisitions, which has been a key strategy in building market share.

Hain Celestial constantly endeavors strategic opportunities to expand its footprint in organic and natural products and in turn, "Change the Way the World Eats". Its latest attempt is the acquisition of Tilda Limited, a renowned name in Basmati rice. Management believes that the buyout of Tilda will augment the company's adjusted earnings by 6 cents to 10 cents a share during the second half of fiscal-year 2014.

Earlier, the company had acquired leading packaged grocery brands Hartley's, Gale's Robertson's, Frank Cooper's and Sun-Pat from Premier Foods plc. The company also acquired Ella's Kitchen Group Limited that offers organic baby food products under approximately 80 brands and provides them in easy to carry pouches.

If we look at the company's earnings surprise history over the last 13 quarters, Hain Celestial has topped estimates by an average of 4.1%. In the last concluded quarter, the company posted earnings of 52 cents a share that came a penny ahead of the Zacks Consensus Estimate and surged 26.8% year over year. Management cited that strong top-line growth of 32.7%, integration of acquired businesses and focus on high margin carrying brands facilitated bottom-line growth.

Management anticipates sales in the range of $2,025 million to $2,050 million in fiscal 2014, reflecting a year-over-year increase of 17%. Earnings are projected in the range of $2.95 to $3.05 per share, up 16% to 20% year over year.

The Zacks Consensus for fiscal 2014 increased 2.3% to $3.09, while for fiscal 2015 it rose 4.6% to $3.61 per share in the last 90 days.

Other Stocks that Warrant a Look

Other stocks worth considering in the sector include, Green Mountain Coffee Roasters, Inc. (Nasdaq:GMCR-Free Report) and ConAgra Foods, Inc. (NYSE:CAG-Free Report), each carrying a Zacks Rank #2 (Buy).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on SBUX - FREE

Get the full Report on HAIN - FREE

Get the full Report on GIS - FREE

Get the full Report on GMCR - FREE

Get the full Report on CAG - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its ...
Microsoft Azure Container Services can be used for container deployment in a variety of ways including support for Orchestrators like Kubernetes, Docker Swarm and Mesos. However, the abstraction for app development that support application self-healing, scaling and so on may not be at the right level. Helm and Draft makes this a lot easier. In this primarily demo-driven session at @DevOpsSummit at 21st Cloud Expo, Raghavan "Rags" Srinivas, a Cloud Solutions Architect/Evangelist at Microsoft, wi...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
Containers are rapidly finding their way into enterprise data centers, but change is difficult. How do enterprises transform their architecture with technologies like containers without losing the reliable components of their current solutions? In his session at @DevOpsSummit at 21st Cloud Expo, Tony Campbell, Director, Educational Services at CoreOS, will explore the challenges organizations are facing today as they move to containers and go over how Kubernetes applications can deploy with lega...
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using...
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...