Central Garden & Pet Company CENT looks well poised for growth, thanks to its robust business strategies. The company has been strengthening its position in the pet supplies and lawn and garden supplies space via prudent acquisitions. It has also been developing products, advancing digital capabilities, optimizing supply chain, and focusing on marketing activities. Impressively, these endeavors have been aiding the company’s performance. The company delivered its fifth straight sales and earnings beat in first-quarter fiscal 2021.
Apparently, shares of this Zacks Rank #1 (Strong Buy) company are witnessing momentum. Its shares have surged 79.3% over the course of a year and outpaced the industry’s mere gain of 0.6%. Additionally, analysts are looking optimistic about the company. We note that the Zacks Consensus Estimate for earnings has moved up 5.2% to $1.01 for the second quarter and 10% to $2.31 for fiscal 2021 over the past 30 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let’s Analyze Further
In order to reinforce its position, Central Garden & Pet has been a disciplined buyer in the garden and pet categories. In fact, acquisitions form an important part of the company’s strategy. Markedly, the company has expanded its business via more than 50 acquisitions since 1992. Through these buyouts, management seeks to enhance the company’s manufacturing capabilities, operating synergies, distribution network, economies of scale and market advantages. Certainly, these acquisitions have been enhancing Central Garden & Pet’s portfolio and customer base, and in turn fueling the top line.
The company’s recent acquisitions include the buyout of Green Garden Products (Green Garden) and Hopewell Nursery. With the addition of Green Garden to Central Garden & Pet’s portfolio, the company looks to expand the business, leverage merchandising, engage in brand building and enhance digital capabilities. Through the Hopewell Nursery buyout, which follows the addition of Bell Nursery to the company’s portfolio, the company looks to strengthen its position in the live goods space with high-quality offerings. It has also acquired C&S Products, which has been complementing its existing wild bird feed business.
Speaking of its digital initiatives, the acquisition of DoMyOwn.com has been advancing the company’s digital capabilities to deliver strong omni-channel performance. DoMyOwn.com is a fast-growing online retailer of professional-grade control products in the United States. The deal adds best-in-class e-commerce fulfillment platform and digital capabilities to the company’s portfolio, thus helping Central Garden & Pet cater to the rising e-commerce demand.
Meanwhile, the company seeks to develop differentiated products, improve sales capacity, respond to channel shifts and become more cost-effective. Unique packaging, point-of-sale displays, logistic capabilities and a high level of customer service are also key catalysts. Driven by these strengths, the company’s both garden and pet businesses have been performing well. That said, we believe all the aforementioned initiatives will keep yielding favorable results. A VGM Score of B further speaks of the company’s inherent potential.
Don’t Miss These Solid Bets Too
Chewy CHWY has a long-term earnings growth rate of 20% and currently has a Zacks Rank #2 (Buy).
Tractor Supply TSCO has a long-term earnings growth rate of 9.1% and currently has a Zacks Rank #2.
General Mills GIS has delivered an earnings surprise of 6.4% in the past four quarters, on average. It boasts a Zacks Rank #2.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Central Garden & Pet Company (CENT) : Free Stock Analysis Report
General Mills, Inc. (GIS) : Free Stock Analysis Report
Tractor Supply Company (TSCO) : Free Stock Analysis Report
Chewy Inc. (CHWY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research