Central Garden and Pet (CENT), ranked No. 5 on Zacks (power sell), has seen revenue projections fall lately, despite recent beats at the start of the month. But the stock turned lower than before. This article looks at why this stock is Zacks Rank #5 (Strong Sell) as it is today’s bear.
Central Garden & Pet Company operates in the garden and pet industry in the United States. Its group includes pets and gardens. The Pet Products segment includes dog and cat accessories such as dog treats and treats, toys, pet bedding and grooming products. Waste management and training pads pet confinement Equipment for aquatic animals, small animals, reptiles and pet birds. including toys Cages and housing, bedding, food and supplements Products for horses and livestock Animal and household health products and insect control products Live fish and small animals as well as outdoor cushions. These products are sold under brands such as Aqueon, Cadet, Comfort Zone, Farnam, Four Paws K&H Pet Products (K&H), Kaytee, Nylabone and Zilla. Seeds, herbs, wild bird food, bird houses and other bird watching equipment. Herbicides, Grass and Other Herbicides Pesticide and insecticide products Fertilizers and Live Plants
when i look at stocks The first thing I did was see if the company beat the numbers. This information immediately tells me where the market’s expectations for the company are. and how the management has communicated with the market Consistently beaten stocks have executives communicating expectations to Wall Street that they can. That’s what you want to see.
In CENT’s case, I saw three beat and missed one values of the Zacks Consensus Estimate alone didn’t make the stock a Zacks Rank #1 (Strong Buy) and it didn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks rank cares about earnings history. But it will be greatly influenced by the movement of revenue projections.
The Zacks rating tells us which stocks are seeing earnings estimates move higher or lower in this case. For CENT, I see yearly estimates falling in the latter.
The consensus amount for the current fiscal year has decreased from $2.64 to $2.35 over the past 60 days.
The next year has gone from $2.82 to $2.55 over the past 60 days.
Such a negative move in earnings estimates is why this stock is ranked No. 5 on Sachs (sold hard).
It should be noted that most of Zacks’ universe stocks are seeing negative earnings revisions. That means the stock, with slightly negative earnings revisions, is now in the top 5 of Zacks (Strong Sell).
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