For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style Scores? ...

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Central Garden (CENT) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the pet supply and lawn and garden markets, which are currently attractive for growth investors [3] Group 2: Earnings Growth - Central Garden has a historical EPS growth rate of 5.1%, but projected EPS growth for this year is expected to be 10.7%, significantly higher than the industry average of 3.2% [4] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Central Garden is 8.7%, surpassing the industry average of 4.5% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 11.4%, compared to the industry average of 9.3% [6] Group 4: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for Central Garden, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] Group 5: Investment Positioning - Central Garden has earned a Growth Score of B and carries a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]

Core Insights - Central Garden & Pet Company (CENT) is a resilient player in the pet consumables and garden supplies market, demonstrating adaptability and innovation despite market changes [1][3] - The company is well-positioned for sustainable growth due to a clear strategic vision, disciplined cost management, and a growing digital presence [2] Growth Strategy - CENT is strategically positioning itself as a dominant player in the U.S. pet and lawn and garden supplies market, leveraging distinctive packaging, effective point-of-sale displays, robust logistics, and exceptional customer service [3] - The Central-to-Home strategy is gaining traction through enhanced digital capabilities, optimized supply chain, and elevated marketing efforts [3] Product Innovation - The company is investing in a robust pipeline of new products across its pet and garden segments, focusing on high-quality pet consumables and sustainable garden solutions [4] Operational Efficiency - CENT's multi-year Cost and Simplicity program is driving operational efficiency through Stock Keeping Unit rationalization, facility consolidations, and enhanced tech integration [5] - Adjusted gross margin expanded by 160 basis points to 29.8% in Q1 of fiscal 2025, with SG&A expenses falling by 2% year over year and operating margins increasing by 300 basis points to 4.3% [6] E-Commerce Performance - In Q1 of fiscal 2025, sales in the Pet segment rose by 4% to $427 million, with e-commerce representing 28% of pet segment revenues, growing at 6% year over year [7] - The Garden segment also saw double-digit e-commerce growth, with revenues growing by 2% to $229 million, driven by strong sales in bird feed and fertilizer [8] Stock Performance - CENT shares have decreased by 4.3% in the past month, but have outperformed the industry's decline of 5.3% [9] - Currently, CENT is trading at a forward 12-month price-to-sales multiple of 0.71X, indicating it may be undervalued relative to its earnings potential [11] Strategic Focus - Despite near-term challenges such as tariffs and macroeconomic uncertainty, CENT's focus on innovation, cost optimization, and digital expansion positions it for sustained long-term growth [13]

Group 1 - Zacks Premium offers various tools for investors, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to enhance investment confidence [1][8] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2][9] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to highlight attractive investment opportunities [3] - The Growth Score evaluates a company's future prospects by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth [4] - The Momentum Score assists investors in capitalizing on price trends by analyzing recent price changes and earnings estimate revisions [5] Group 3 - The VGM Score combines the Value, Growth, and Momentum Scores, serving as a comprehensive indicator to identify stocks with the best overall potential [6] - The Zacks Rank utilizes earnings estimate revisions to simplify the process of building a successful investment portfolio, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] Group 4 - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [9][10] - Central Garden & Pet Co. (CENT) is highlighted as a strong investment opportunity, holding a 1 (Strong Buy) Zacks Rank and a VGM Score of A, with key growth drivers including product innovation and customer service [11] - CENT has a Momentum Style Score of B, with a 4.4% increase in shares over the past four weeks and an upward revision of earnings estimates, indicating strong potential for investors [12]

Company Overview - Central Garden & Pet is focusing on growth through innovation, e-commerce expansion, and cost efficiencies in its Pet and Garden segments [2] - The company is implementing a Cost and Simplicity program to streamline operations and is investing in digital capabilities and higher-margin consumables to enhance profitability [2] Financial Performance - Central Garden is expected to report quarterly earnings of $0.95 per share, reflecting a year-over-year decrease of 4% [3] - Revenue for the upcoming quarter is projected to be $878.1 million, which is a decline of 2.4% compared to the same quarter last year [3] Stock Performance - Central Garden shares increased by 5.7% in the last trading session, closing at $35.58, following a 9.5% loss over the previous four weeks [1] - The consensus EPS estimate for Central Garden has remained unchanged over the last 30 days, indicating a lack of upward revisions in earnings estimates [5] - The stock currently holds a Zacks Rank of 1 (Strong Buy), suggesting positive sentiment among analysts [5] Industry Context - Central Garden operates within the Zacks Consumer Products - Discretionary industry, which includes other companies like The RealReal [5] - The RealReal's consensus EPS estimate has decreased by 16.7% over the past month, contrasting with Central Garden's stable estimates [6]

Company Overview - Central Garden & Pet Co. is focused on product innovation and aims to strengthen its position in the U.S. pet supplies and lawn and garden supplies market [12] - The company utilizes unique packaging, point-of-sale displays, logistic capabilities, and high customer service levels as key growth catalysts [12] Investment Ratings - Central Garden has a Zacks Rank of 1 (Strong Buy) and a VGM Score of A, indicating strong potential for investment [12] - The company is also a top pick for growth investors, with a Growth Style Score of B, forecasting year-over-year earnings growth of 10.8% for the current fiscal year [13] Earnings Estimates - In the last 60 days, three analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.15 to $2.37 per share [13] - Central Garden boasts an impressive average earnings surprise of 208.7%, highlighting its ability to exceed earnings expectations [13]

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks w ...

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, using factors like one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in building a successful portfolio [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks but high Style Scores may still present risks due to downward earnings outlooks [11] Company Spotlight: Central Garden & Pet Co. (CENT) - Central Garden & Pet Co. is positioned as a leading player in the U.S. pet supplies and lawn and garden supplies market, driven by product innovation and customer service [12] - CENT holds a 1 (Strong Buy) Zacks Rank and a VGM Score of A, indicating strong investment potential [12][14] - The company is projected to achieve year-over-year earnings growth of 10.8% for the current fiscal year, with recent earnings estimates revised upward [13]

Core Insights - The investment approach is centered on fundamental analysis, focusing on companies with a strong competitive advantage, consistent free cash flow growth, and solid financial performance [1] - The philosophy emphasizes long-term investing over short-term trading strategies, aiming to unlock value through a balanced market perspective [1] - The goal is to provide insightful and actionable advice on both undervalued stocks with growth potential and overvalued stocks to avoid [1] Company and Industry Analysis - The analyst has a background in business and economics, which supports their investment analysis and strategies [1] - The contribution to Seeking Alpha is viewed as a way to engage with a community that values deep analytical insights into the market [1] - The analyst currently works at a local brokerage firm, indicating practical experience in the financial sector [1]

Industry Overview - The Consumer Products-Discretionary industry is dynamic, influenced by changing consumer preferences, economic conditions, and innovation [1] - The industry is cyclical, directly correlated with the economy, targeting middle-to-higher-income groups with high-priced discretionary products [3] - Key product categories include fashion, jewelry, home and art products, health and personal care products, and pet supplies [3] Consumer Spending Trends - Consumer spending in discretionary categories is expected to remain strong as inflationary pressures ease and labor markets are resilient [1] - In January, the U.S. economy added 143,000 jobs, with average hourly earnings increasing by 4.1% year-over-year, contributing to consumer spending resilience [4] Key Industry Trends - Companies focusing on digital transformation, sustainability, and unique customer experiences are well-positioned for growth [2] - Brand enhancement and capital discipline are critical, with companies deepening consumer engagement and optimizing operational efficiency [5] - The industry is fragmented, with companies investing in digital ecosystems to gain competitive advantages, although this may compress margins due to high costs [6] Market Performance - The Zacks Consumer Products-Discretionary industry ranks 83, placing it in the top 33% of over 250 Zacks industries, indicating robust near-term prospects [7][8] - The industry's earnings estimate has risen by approximately 2% since the beginning of 2025, reflecting growing analyst confidence [9] Stock Performance - Over the past year, the industry has increased by 15.3%, underperforming the S&P 500's rise of 23.2% and the broader sector's increase of 18% [10] - The industry currently trades at a forward 12-month price-to-sales (P/S) ratio of 3.26X, compared to the S&P 500's 5.37X and the sector's 2.26X [12] Notable Companies - **Central Garden & Pet Company**: Positioned as a leader in pet and lawn supplies, focusing on brand building and cost management, with expected sales growth of 1% and earnings growth of 8.4% [14][15] - **The Honest Company**: Demonstrates strong growth through strategic initiatives, with expected sales growth of 8.9% and earnings growth of 82.9% [17][19] - **The RealReal**: Reports strong preliminary financial results with GMV reaching $503.5 million, exceeding guidance, and expected sales growth of 9.1% [21][22] - **Interparfums**: Focuses on brand positioning and market reach, with expected sales growth of 10.3% and earnings growth of 8.2% [24][25]