Hawkins (HWKN) Shares Rally 27% in 6 Months: What's Driving It?
Hawkins, Inc’s HWKN shares have gained 27.2% in the past six months. The company also outperformed the industry’s rise of 23.9% over the same time frame. It has also topped the S&P 500’s nearly 17.6% rise over the same period.
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Let’s take a look at the factors behind the stock’s price appreciation.
What’s Driving Hawkins?
In the third quarter of fiscal 2024, Hawkins witnessed a remarkable surge in its Water Treatment division, with sales soaring by 20% year-over-year to reach $82 million. Increased volumes and higher selling prices across various product lines propelled the upside.
Underlining its commitment to expanding its water treatment business, Hawkins strategically acquired Industrial Research Corporation, a provider of water treatment chemicals and equipment in central and northern Louisiana, eastern Texas and southern Arkansas. This acquisition is in line with HWKN’s growth strategy for the northern Louisiana and east Texas regions, complementing its existing operations and bolstering its presence in vital markets.
Furthermore, Hawkins values the established relationships Industrial Research holds within the local community and aims to sustain and enhance them. With confidence in its diversified business portfolio, Hawkins anticipates continued generation of free cash flow and effective execution of its growth initiatives.
In terms of financial performance, Hawkins surpassed expectations in the third quarter of fiscal 2024, reporting earnings of 71 cents per share, exceeding the Zacks Consensus Estimate of 61 cents. The company has outperformed earnings forecasts in each of the past four quarters, with an impressive average surprise of 30.6%.
The Zacks Consensus Estimate for fiscal 2024 earnings is pegged at $3.61, indicating year-over-year growth of 26.2%. There has been a 4.3% upward revision in the consensus estimate for the current fiscal year's earnings in the past 60 days.
Hawkins, Inc. Price and Consensus
Hawkins, Inc. price-consensus-chart | Hawkins, Inc. Quote
Zacks Rank & Other Key Picks
Hawkins currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, sporting a Zacks Rank #1 (Strong Buy), and Ecolab Inc. ECL and Innospec Inc. IOSP,each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 12.2%. The company’s shares have increased 69.6% in the past year.
Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company’s shares have rallied 46.9% in the past year.
The consensus estimate for IOSP’s current year earnings is pegged at $6.72 per share, indicating a 10.3% year-over-year rise. IOSP beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 10.6%. The company’s shares have increased 25.9% in the past year.
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