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Here's What Makes Hawkins Stock a Solid Choice for Now
HawkinsHawkins(US:HWKN) ZACKSยท2024-08-29 13:05

Core Viewpoint - Hawkins, Inc. (HWKN) has experienced a significant 76.2% increase in stock value over the past six months, driven by strong earnings and strategic expansion in its Water Treatment division, presenting an attractive investment opportunity with a Zacks Rank 1 (Strong Buy) [1] Earnings Performance - HWKN has surpassed the Zacks Consensus Estimate in three of the last four quarters, achieving an average earnings surprise of 15% [2] Growth Outlook - The Zacks Consensus Estimate for 2024 earnings is projected at $4.14, reflecting a 15.3% increase from the previous year, with expected earnings growth of 4.2% in 2025 [3] Earnings Estimates Revision - The Zacks Consensus Estimate for 2024 has been raised by approximately 12.8% in the past two months, alongside a 2.4% upward revision for the estimated figure for 2025 [4] Stock Performance - Over the past year, HWKN's shares have surged 98%, significantly outperforming the industry, which has seen a decline of 10.4% [6] Key Drivers of Momentum - The stock rally is attributed to strong first-quarter fiscal 2025 results and a favorable outlook for the Water Treatment division, which reported a robust 25% year-over-year sales growth, reaching $117.2 million, driven by revenues from recent acquisitions [7] Strategic Acquisitions - Hawkins has strengthened its Water Treatment business through strategic acquisitions, including Industrial Research Corporation and Wofford Water Service, enhancing its market presence and expanding operations in key regions [8]