E-commerce and Central Garden & Pet’s (CENT) buyouts drive sales – Low Calorie Diets Tips

Central Garden & Pet Company CENT continues to strengthen its position in the pet supplies and lawn and garden supplies sectors. Management has been developing new products, expanding digital capabilities, optimizing the supply chain and focusing on marketing activities for some time. CENT is also on course with its “Central to Home” strategy. These factors constantly support CENT’s performance.

For 2022, Zacks consensus estimates for Central Garden & Pet’s sales and earnings per share (EPS) are currently $3.46 billion and $3.14, respectively. These estimates point to growth of 4.7% and 7.5%, respectively, compared to the corresponding figures for the same period last year. This increases analysts’ optimism for the stock.

Shares of this manufacturer and distributor of lawn and garden products and pet supplies have gained 4.5% over the past three months while the industry has fallen 1.5%. A Value Score of B for this current Zacks stock ranked #2 (Buy) speaks volumes for its attractiveness.

Let’s dive deeper

Unique packaging, point-of-sale displays, logistical skills and a high level of customer service are key catalysts. As the leading manufacturer of garden and pet supplies in the United States, Central Garden & Pet has a diversified portfolio of brands and strong relationships with key retailers. In addition, management intends to develop differentiated products, improve sales capacity and become more cost-effective.

We find that Central Garden & Pet has been increasing its presence in the garden and pet space for quite some time. Through these acquisitions, CENT aims to enhance its manufacturing capabilities, operational synergies and distribution network, as well as advance key digital and e-commerce competencies. These acquisitions have enriched CENT’s portfolio and customer base for some time, thereby contributing to its revenues.

Some of the notable recent acquisitions are that of D&D Commodities Ltd. (D&D), a leading supplier of premium birdseed, June 2021; Green Garden Products, a leading provider of vegetable, herb and flower seed packets, seed starters and plant nutrients, in February 2021 and Hopewell Nursery, a leading breeder of live goods, in January 2021.

Additionally, over the years, CENT has evolved its digital capabilities, streamlined supply chain, expanded data analytics capability and focused on marketing activities to improve customer engagement. The acquisition of DoMyOwn.com strengthens its digital capabilities by delivering strong omni-channel performance. Central Garden & Pet implemented the DoMyOwn Pick, Pack and Ship solution for online fulfillment at Arden’s largest pillow factory.

Central Garden & Pet has also partnered with leading e-commerce platform Profitero, Inc. In addition, in order to gain a reasonable market share, CENT tries to develop differentiated products, improve sales capacity and respond to channel shifts. CENT is also investing in capacity expansion and automation to meet continued strong demand.

Wrap up

Buoyed by the above efforts, the company’s Pet and Garden segments have performed impressively. Contributions from dogs and cats, outdoor cushions, professional and pet distribution companies have supported the Pet unit, while strategic acquisitions have propelled the Garden division.

We believe that all of the above growth factors will continue to bring good results in the future.

Watch out for those solid picks too

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Zacks consensus estimates for Rocky Brands’ 2022 sales and EPS are pointing to growth of 23.1% and 22.8%, respectively, from the corresponding prior-year numbers.

caleres CAL, a Shoe Retailer, is currently sporting a Zacks Rank of 1. CAL has a trailing four-quarter earnings surprise averaging 62.9%.

The Zacks Consensus estimate for Caleres’ sales and earnings per share for the current fiscal year indicates growth of 5.2% and 1.8%, respectively, over the corresponding numbers a year ago.

tractor supply TSCO, the leading retail chain for farm and ranch stores, currently has a Zacks Rank of 2 (Buy). TSCO has a trailing four-quarter earnings surprise averaging 12.4%.

Zacks Consensus estimates for Tractor Supply’s fiscal year-to-date sales and EPS indicate growth of 8.3% and 10.6%, respectively, from the corresponding prior-year figures.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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