This consumer products company beat analysts’ estimates by $0.16 last quarter, and four analysts have increased their EPS forecasts in the past 30 days.
Helen of Troy (HELE)
From Ford Equity Research Report
Helen of Troy (HELE) is a designer, developer, importer, marketer, and distributor of a portfolio of brand-name consumer products. The company has four segments: housewares, which provides food preparation and storage, cleaning, organization, and baby and toddler care products; healthcare / home environment, which focuses on health care devices, such as thermometers and blood pressure monitors and heating pads; water filtration systems; and small home appliances; personal care, which provides electric hair care, beauty care and wellness appliances, grooming tools and accessories, and personal care and grooming products; and nutritional supplements, which provides vitamins, minerals and supplements.
The company has produced a positive trend in earnings per share over the past 5 quarters. However, recent analyst estimates for the company have been unchanged, while HELE has posted results that exceeded analysts’ expectations. Based on operating earnings yield, the company is undervalued when compared to all of the companies we cover. Share price changes over the past year indicates that HELE will perform well over the near term.
While Helen of Troy Ltd.'s earnings have risen from $5.46 to an estimated $6.13 over the past 5 quarters, they have shown acceleration in quarterly growth rates when adjusted for the volatility of earnings. This indicates an improvement in future earnings growth may occur.
Earnings forecasts for Helen of Troy Ltd. have been unchanged recently, which indicates that expectations of future earnings growth remain steady. The company has also reported higher earnings than those predicted in earlier estimates. This indicates an ability to exceed analysts’ expectations and the potential for improving earnings growth in the future.
Relative Valuation is POSITIVE. Helen of Troy Ltd.'s operating earnings yield of 5.9% ranks above 70% of the other companies in the Ford universe of stocks, indicating that it is undervalued.
Price Movement is POSITIVE. Helen of Troy Ltd.'s stock price is up 4% in the last 12 months, down 0.8% in the past quarter, and down 0.4% in the past month. This historical performance should lead to above average price performance in the next one to three months.
Richard Segarra, CFA, Ford Equity Research Report, www.fordequity.com, 800-842-0207, July 1, 2016