Yahoo Finance Helen of Troy (HELE) Poised to Grow in 2017: Time to Buy?
Consumer products company, Helen of Troy Limited HELE seems to be a good choice for investors to hold onto seeking growth in 2017. The shares of the company gained a promising 12.3% in the last three months, outperforming the Zacks categorized Cosmetics and Toiletries industries which declined 18.4% during the same period.
Growth Drivers
Helen of Troy has been growing its Personal Care and Health and Wellness category by consistent innovation. Further, the company undertakes several strategic acquisitions in order to boost its share in the market. Moreover, the acquisition of Healthy Directions in Sep 2014, helped it to enter the growing vitamins, minerals and supplements (VMS) category which seems to have a bright prospect. According to Nutrition Business Journal, the VMS market is expected to continue to grow at a mid-to-high single-digit rate annually through 2020.
Further, the company has fared pretty well in terms of earnings performance as well. Helen of Troy has outperformed the Zacks Consensus Estimate in all the trailing four quarters with an average positive surprise of 23.21%. In the recently reported third-quarter fiscal 2017, it reported higher-than-expected earnings driven by higher margins.
Following, higher-than-expected profit in third-quarter fiscal 2017, Helen of Troy raised fiscal year 2017 earnings guidance to the range of $6.20–$6.50 from $5.85–$6.35, expected previously. The Zacks Consensus estimate for fiscal 2017 is pegged at $6.12 per share, up 2% from the year-ago level. Moreover, it has a long-term earnings growth rate of 10.75%.
In terms of valuation, the stock seems to be a good pick. The stock’s P/E ration stands at 15.16X, lower compared to the industry level of 22.06X which implies that the stock is undervalued and has scope for appreciation.
The stock currently carries a Zacks Rank #2 (Buy) with a VGM Score of ‘B’ which makes it an attractive pick for investors.
Other picks
Other favorably placed stocks in the broader consumer staples sector include ConAgra Foods Inc. CAG, Campbell Soup Company CPB and Pinnacle Foods Inc. PF, all carrying the same Zacks Rank as Helen of Troy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ConAgra Foods has an expected earnings growth of 8%. Campbell Soup has an expected earnings growth rate of 5.6%, while Pinnacle Foods has a long-term growth rate of 6.5%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks 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
Helen of Troy Ltd. (HELE): Free Stock Analysis Report
ConAgra Foods Inc. (CAG): Free Stock Analysis Report
Campbell Soup Co. (CPB): Free Stock Analysis Report
Pinnacle Foods Inc. (PF): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
