Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Central Garden (CENTA) is highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's genuine growth potential beyond traditional metrics [2] - The company currently holds a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being particularly desirable as it signals strong future prospects [4] - Central Garden's projected EPS growth for the current year is 11.3%, significantly outperforming the industry average of 3.2% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [6] - Central Garden's year-over-year cash flow growth stands at 8.7%, exceeding the industry average of 4.5% [6] - 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% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are indicative of potential stock price movements [8] - The current-year earnings estimates for Central Garden have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] Group 5: Conclusion - Central Garden has achieved a Growth Score of B and a Zacks Rank of 2, reflecting positive earnings estimate revisions and strong growth metrics [9] - This combination positions Central Garden as a potential outperformer and a solid choice for growth investors [10]

Group 1 - Central Garden (CENTA) shares have increased by 1.5% over the past four weeks, closing at $32.26, with a mean price target of $41.83 indicating a potential upside of 29.7% [1] - The average price targets from analysts range from a low of $31 to a high of $50, with a standard deviation of $6.31, suggesting variability in estimates [2] - Analysts are optimistic about CENTA's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlates with stock price movements [4][10] Group 2 - The Zacks Consensus Estimate for the current year has increased by 0.1% over the past month, with one estimate rising and no negative revisions [11] - CENTA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [12] - While consensus price targets may not be reliable for predicting exact gains, they can provide a directional guide for price movement [12]

Shares of Central Garden (CENTA) have gained 0.2% over the past four weeks to close the last trading session at $31.32, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $42.20 indicates a potential upside of 34.7%.The average comprises five short-term price targets ranging from a low of $34 to a high of $50, with a standard deviation of $5.93. While the lowest estimate indicates ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.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, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the tr ...

Group 1 - Central Garden & Pet Company (CENTA) is experiencing significant activity in the options market, particularly with the March 21, 2024 $20 Put showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Analysts have a mixed outlook on Central Garden & Pet Company, with no earnings estimates increased in the last 60 days and three analysts reducing their estimates, leading to a decrease in the Zacks Consensus Estimate from $1.01 to $0.95 per share [3] Group 2 - The high implied volatility may indicate a developing trading opportunity, as options traders often seek to sell premium on such options, hoping the stock does not move as much as expected by expiration [4]

Shares of Central Garden (CENTA) have gained 10.1% over the past four weeks to close the last trading session at $32.86, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $41.60 indicates a potential upside of 26.6%.The average comprises five short-term price targets ranging from a low of $31 to a high of $50, with a standard deviation of $7.02. While the lowest estimate indicates ...

(Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 For the quarterly period eDndeecdember 28, 2024 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________________________________________ FORM10-Q or ☐ TRANSITION REPORT PURSUANT OF SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 For the transition period from to Commission File Num0b0e1r-:33268 Central Garden & Pet Company De ...

Group 1 - Central Garden (CENTA) reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of a loss of $0.03 per share, marking an earnings surprise of 800% [1] - The company achieved revenues of $656.44 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.15% and showing an increase from $634.53 million year-over-year [2] - Central Garden has outperformed consensus EPS estimates in all four of the last quarters and has topped revenue estimates twice in the same period [2] Group 2 - The stock has underperformed the market, losing about 5.1% since the beginning of the year compared to the S&P 500's gain of 2.7% [3] - The current consensus EPS estimate for the upcoming quarter is $1.01 on revenues of $904.71 million, and for the current fiscal year, it is $2.22 on revenues of $3.23 billion [7] - The Zacks Industry Rank indicates that the Consumer Products - Discretionary sector is currently in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8]

Financial Performance - Fiscal 2025 Q1 net sales increased by 3% to $656 million compared to $635 million in the prior year[1] - Fiscal 2025 Q1 EPS rose to $0.21 from $0.01 a year ago, reflecting significant improvement in profitability[1] - Gross profit for Q1 was $196 million, with a gross margin improvement of 160 basis points to 29.8% due to productivity gains and moderating inflation[3] - Operating income grew to $28 million from $8 million in the prior year, with an operating margin expansion of 300 basis points to 4.3%[4] - Pet segment net sales increased by 4% to $427 million, while operating income grew to $51 million from $43 million, with an operating margin of 12.0%[5][6] - Garden segment net sales rose by 2% to $229 million, with operating income improving to $2 million from a loss of $9 million, achieving an operating margin of 1.1%[7][8] - Net income for the three months ended December 28, 2024, was $14,181,000, a significant increase from $567,000 in the same period last year[27] - Adjusted EBITDA for the three months ended December 28, 2024, was $55,436,000, compared to $36,978,000 for the same period last year, reflecting a year-over-year increase of approximately 50%[32] Cash and Debt Management - Cash balance at the end of Q1 was $618 million, up from $341 million a year ago, indicating strong liquidity[9] - Total debt remained stable at $1.2 billion, with a gross leverage ratio of 2.9x, down from 3.0x in the prior year[9] - Cash, cash equivalents, and restricted cash at the end of the period totaled $632,669,000, down from $768,403,000 at the beginning of the period[27] - Cash flows from operating activities resulted in a net cash outflow of $68,832,000 for the three months ended December 28, 2024, slightly improved from $69,784,000 in the prior year[27] - The company reported a net cash used in investing activities of $9,418,000, a decrease from $70,475,000 in the same period last year, indicating reduced investment expenditures[27] Shareholder Returns - Central repurchased 1.68 million shares for $52 million during the quarter, with $131 million remaining for future repurchases[10] - The company repurchased common stock totaling $54,022,000 during the three months ended December 28, 2024, compared to $6,775,000 in the prior year[27] Other Financial Metrics - The company maintains its fiscal 2025 non-GAAP EPS outlook of $2.20 or better, despite macroeconomic challenges[12][13] - The company incurred stock-based compensation expenses of $5,510,000 for the three months ended December 28, 2024, compared to $6,021,000 in the prior year[27] - Accounts receivable increased significantly, with a change of $(73,439,000) for the three months ended December 28, 2024, compared to $(32,952,000) in the same period last year[27] - The effect of exchange rate changes resulted in a cash decrease of $(2,038,000) for the three months ended December 28, 2024, contrasting with a cash increase of $790,000 in the same period last year[27] - The company reported a net income attributable to noncontrolling interest of $172,000 for the three months ended December 28, 2024, compared to $137,000 in the prior year[32]

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies based on recent earnings estimate revisions. Company Summaries - Industria de Diseño Textil, S.A. (IDEXY) has seen its current year earnings estimate revised downward by 6.5% over the last 60 days [1] - Central Garden & Pet Company (CENTA) has experienced a 7.5% downward revision in its current year earnings estimate over the past 60 days [3] - Lonza Group AG (LZAGY) has had its current year earnings estimate revised down by 6% in the last 60 days [4]