SodaStream International Ltd. SODA recently announced the launch of ‘Aqua Fizz Sparkling Water Maker’ in the U.S. which allows consumers to carbonate and serve fresh sparkling water in a stylish glass carafe.
The Aqua Fizz brand is dissimilar to the SodaStream brand as it can solely be used for creating sparkling water whereas the latter provides a range of flavored offerings in addition to sparkling water in a reusable plastic bottle.
According to recent reports, Americans consume more bottled water than soda. Thus, SodaStream is capitalizing on the growing demand for sparkling water. The Aqua Fizz launch marks SodaStream’s strategic shift from sweetened beverages toward sparkling water.
Coming to the company’s financial performance, SodaStream surpassed estimates in each of the trailing four quarters of 2016, at an average of 126.2%. In 2016, the company generated profits of $2.07 per share, reflecting a 102.1% year-over-year improvement on only a 14.5% revenue hike. This highlights the company's strong business model, operating leverage and cost-control abilities.
SodaStream’s shares advanced 145.2% in 2016. Also, shares gained 23.5% year to date, faring better than the Zacks categorized Consumer Products-Miscellaneous Discretionary industry’s decline of 0.5%.
Meanwhile, the current quarter consensus estimate has risen 15.2% in the past two months, while full-year 2017 estimates inched 35.2% higher, justifying the company’s Zacks Rank #1 (Strong Buy).You can see the consensus estimate trend and recent price action for the stock in the chart below:
SodaStream International Ltd. Price and Consensus
SodaStream International Ltd. Price and Consensus | SodaStream International Ltd. Quote
Additionally, estimates for 2018 increased 23.2% in the last 60 days, hinting at the solid prospects of the stock.
Other Key Picks
Apart from SodaStream, investors may consider stocks in the Consumer Products - Discretionary industry like NutriSystem Inc NTRI, Acme United Corporation ACU and Prestige Brand Holdings, Inc. PBH.
All three companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NutriSystem is expected to witness 25.6% growth in 2017 earnings. Full-year 2017 earnings for Acme are expected to increase 9.9%.
Prestige surpassed earnings in all of the past four quarters, the average beat being 6.9%.
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