Group 1 - Zacks Premium offers various tools for investors, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to enhance investment confidence [1][8] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2][9] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to highlight attractive investment opportunities [3] - The Growth Score evaluates a company's future prospects by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth [4] - The Momentum Score assists investors in capitalizing on price trends by analyzing recent price changes and earnings estimate revisions [5] Group 3 - The VGM Score combines the Value, Growth, and Momentum Scores, serving as a comprehensive indicator to identify stocks with the best overall potential [6] - The Zacks Rank utilizes earnings estimate revisions to simplify the process of building a successful investment portfolio, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] Group 4 - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [9][10] - Central Garden & Pet Co. (CENT) is highlighted as a strong investment opportunity, holding a 1 (Strong Buy) Zacks Rank and a VGM Score of A, with key growth drivers including product innovation and customer service [11] - CENT has a Momentum Style Score of B, with a 4.4% increase in shares over the past four weeks and an upward revision of earnings estimates, indicating strong potential for investors [12]

Company Overview - Central Garden & Pet is focusing on growth through innovation, e-commerce expansion, and cost efficiencies in its Pet and Garden segments [2] - The company is implementing a Cost and Simplicity program to streamline operations and is investing in digital capabilities and higher-margin consumables to enhance profitability [2] Financial Performance - Central Garden is expected to report quarterly earnings of $0.95 per share, reflecting a year-over-year decrease of 4% [3] - Revenue for the upcoming quarter is projected to be $878.1 million, which is a decline of 2.4% compared to the same quarter last year [3] Stock Performance - Central Garden shares increased by 5.7% in the last trading session, closing at $35.58, following a 9.5% loss over the previous four weeks [1] - The consensus EPS estimate for Central Garden has remained unchanged over the last 30 days, indicating a lack of upward revisions in earnings estimates [5] - The stock currently holds a Zacks Rank of 1 (Strong Buy), suggesting positive sentiment among analysts [5] Industry Context - Central Garden operates within the Zacks Consumer Products - Discretionary industry, which includes other companies like The RealReal [5] - The RealReal's consensus EPS estimate has decreased by 16.7% over the past month, contrasting with Central Garden's stable estimates [6]

Company Overview - Central Garden & Pet Co. is focused on product innovation and aims to strengthen its position in the U.S. pet supplies and lawn and garden supplies market [12] - The company utilizes unique packaging, point-of-sale displays, logistic capabilities, and high customer service levels as key growth catalysts [12] Investment Ratings - Central Garden has a Zacks Rank of 1 (Strong Buy) and a VGM Score of A, indicating strong potential for investment [12] - The company is also a top pick for growth investors, with a Growth Style Score of B, forecasting year-over-year earnings growth of 10.8% for the current fiscal year [13] Earnings Estimates - In the last 60 days, three analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.15 to $2.37 per share [13] - Central Garden boasts an impressive average earnings surprise of 208.7%, highlighting its ability to exceed earnings expectations [13]

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, which can lead to solid returns, but identifying such stocks can be challenging [1] Group 1: Company Overview - Central Garden (CENT) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the pet supply and lawn and garden markets, making it a relevant choice for growth investors [3] Group 2: Earnings Growth - Central Garden has a historical EPS growth rate of 5.1%, but projected EPS growth for this year is expected to be 10.6%, surpassing the industry average of 8.6% [5] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Central Garden is currently at 8.7%, significantly higher than the industry average of 1.8% [6] - Over the past 3-5 years, the company's annualized cash flow growth rate has been 11.4%, compared to the industry average of 3.7% [7] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Central Garden, with the Zacks Consensus Estimate for the current year increasing by 6.8% over the past month [9] Group 5: Investment Potential - Central Garden has achieved a Growth Score of B and a Zacks Rank 1 due to positive earnings estimate revisions, indicating it is a potential outperformer and a solid choice for growth investors [11]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, using factors like one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in building a successful portfolio [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks but high Style Scores may still present risks due to downward earnings outlooks [11] Company Spotlight: Central Garden & Pet Co. (CENT) - Central Garden & Pet Co. is positioned as a leading player in the U.S. pet supplies and lawn and garden supplies market, driven by product innovation and customer service [12] - CENT holds a 1 (Strong Buy) Zacks Rank and a VGM Score of A, indicating strong investment potential [12][14] - The company is projected to achieve year-over-year earnings growth of 10.8% for the current fiscal year, with recent earnings estimates revised upward [13]

Core Insights - The investment approach is centered on fundamental analysis, focusing on companies with a strong competitive advantage, consistent free cash flow growth, and solid financial performance [1] - The philosophy emphasizes long-term investing over short-term trading strategies, aiming to unlock value through a balanced market perspective [1] - The goal is to provide insightful and actionable advice on both undervalued stocks with growth potential and overvalued stocks to avoid [1] Company and Industry Analysis - The analyst has a background in business and economics, which supports their investment analysis and strategies [1] - The contribution to Seeking Alpha is viewed as a way to engage with a community that values deep analytical insights into the market [1] - The analyst currently works at a local brokerage firm, indicating practical experience in the financial sector [1]

Industry Overview - The Consumer Products-Discretionary industry is dynamic, influenced by changing consumer preferences, economic conditions, and innovation [1] - The industry is cyclical, directly correlated with the economy, targeting middle-to-higher-income groups with high-priced discretionary products [3] - Key product categories include fashion, jewelry, home and art products, health and personal care products, and pet supplies [3] Consumer Spending Trends - Consumer spending in discretionary categories is expected to remain strong as inflationary pressures ease and labor markets are resilient [1] - In January, the U.S. economy added 143,000 jobs, with average hourly earnings increasing by 4.1% year-over-year, contributing to consumer spending resilience [4] Key Industry Trends - Companies focusing on digital transformation, sustainability, and unique customer experiences are well-positioned for growth [2] - Brand enhancement and capital discipline are critical, with companies deepening consumer engagement and optimizing operational efficiency [5] - The industry is fragmented, with companies investing in digital ecosystems to gain competitive advantages, although this may compress margins due to high costs [6] Market Performance - The Zacks Consumer Products-Discretionary industry ranks 83, placing it in the top 33% of over 250 Zacks industries, indicating robust near-term prospects [7][8] - The industry's earnings estimate has risen by approximately 2% since the beginning of 2025, reflecting growing analyst confidence [9] Stock Performance - Over the past year, the industry has increased by 15.3%, underperforming the S&P 500's rise of 23.2% and the broader sector's increase of 18% [10] - The industry currently trades at a forward 12-month price-to-sales (P/S) ratio of 3.26X, compared to the S&P 500's 5.37X and the sector's 2.26X [12] Notable Companies - **Central Garden & Pet Company**: Positioned as a leader in pet and lawn supplies, focusing on brand building and cost management, with expected sales growth of 1% and earnings growth of 8.4% [14][15] - **The Honest Company**: Demonstrates strong growth through strategic initiatives, with expected sales growth of 8.9% and earnings growth of 82.9% [17][19] - **The RealReal**: Reports strong preliminary financial results with GMV reaching $503.5 million, exceeding guidance, and expected sales growth of 9.1% [21][22] - **Interparfums**: Focuses on brand positioning and market reach, with expected sales growth of 10.3% and earnings growth of 8.2% [24][25]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - The Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Cash Flow [4] - The Growth Score evaluates a company's financial health and future outlook through projected earnings and sales [5] - The Momentum Score helps investors capitalize on price trends by analyzing recent price changes and earnings estimate shifts [6] - The VGM Score combines the three Style Scores to identify stocks with attractive value, growth potential, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down choices [10] Stock Highlight: Central Garden & Pet Co. (CENT) - Central Garden & Pet Co. is positioned as a leading player in the U.S. pet supplies and lawn and garden supplies market, driven by product innovation and customer service [12] - CENT holds a 1 (Strong Buy) Zacks Rank and a VGM Score of A, indicating strong potential [12] - The company has a Growth Style Score of B, with an expected year-over-year earnings growth of 8.4% for the current fiscal year, and a Zacks Consensus Estimate of $2.32 per share [13] - CENT has demonstrated an average earnings surprise of 208.7%, making it a strong candidate for growth investors [13]

Group 1: Central Garden & Pet Company (CENT) - Central Garden & Pet Company operates in the gardening and pet supplies sector and has a Zacks Rank of 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 4.5% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 16.57, which is lower than the S&P 500's P/E of 21.79, and it possesses a Value Score of A [1] Group 2: Enova International, Inc. (ENVA) - Enova International, Inc. is a technology and analytics company that provides online financial services and also carries a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 4.8% over the last 60 days [2] - Enova has a price-to-earnings ratio (P/E) of 10.14, which is lower than the industry average of 15.30, and it possesses a Value Score of A [2]

Financial Performance - Total net sales for the three months ended December 28, 2024, were $656.4 million, an increase from $634.5 million for the same period in 2023, representing a growth of approximately 3.4%[93] - Operating income for the total company was $28.0 million for the three months ended December 28, 2024, compared to $8.4 million in the prior year, indicating a significant improvement[93] - Net income attributable to Central Garden & Pet Company was $14.0 million for the three months ended December 28, 2024, compared to $430,000 for the same period in 2023, reflecting a substantial increase[93] - Basic earnings per share (EPS) for the three months ended December 28, 2024, was $0.22, compared to $0.01 for the same period in 2023[89] - Total revenue for the three months ended December 28, 2024, was $656.4 million, an increase from $634.5 million for the same period in 2023, representing a growth of approximately 3.0%[95] Segment Performance - The Pet segment generated net sales of $427.5 million, up from $409.2 million, while the Garden segment saw sales increase from $225.3 million to $229.0 million[93] - The Pet Segment generated $427.5 million in revenue for the three months ended December 28, 2024, compared to $409.2 million in the same period of 2023, reflecting a growth of about 4.0%[95] - The Garden Segment reported revenues of $228.9 million for the three months ended December 28, 2024, up from $225.3 million in the same period of 2023, indicating a growth of approximately 1.6%[95] Cash and Liquidity - The company reported cash and cash equivalents of $618,020 thousand as of December 28, 2024, compared to $341,419 thousand on December 30, 2023, indicating a significant increase of 81.0%[36] - The company’s total cash, cash equivalents, and restricted cash reached $632,669 thousand as of December 28, 2024, compared to $355,619 thousand on December 30, 2023, an increase of 77.7%[36] - Restricted cash amounted to $14,649 thousand as of December 28, 2024, slightly up from $14,200 thousand on December 30, 2023[36] - As of December 28, 2024, the company had no borrowings outstanding under the Credit Facility, with a total net availability of approximately $50 million[81] - The company maintained compliance with all financial covenants under the Credit Facility as of December 28, 2024[83] Debt and Financing - The Company has long-term debt with a net carrying value of $1,190.1 million as of December 28, 2024, slightly increasing from $1,188.2 million as of December 30, 2023[66] - The Company issued $400 million of 5.125% senior notes due April 2031, with proceeds used to repay outstanding borrowings and for general corporate purposes[68] - The Company incurred approximately $6 million in debt issuance costs related to the 2031 Notes, which are being amortized over the term of the notes[69] - The company incurred approximately $2.4 million in debt issuance costs related to the Credit Facility, which are being amortized over the term of the facility[82] Assets and Inventory - Total assets as of December 28, 2024, were $3.54 billion, an increase from $3.42 billion in the prior year[93] - Total inventories, net, decreased to $815,782 thousand as of December 28, 2024, from $948,398 thousand on December 30, 2023, reflecting a decline of 14.0%[57] - The company reported finished goods inventory of $403,268 thousand as of December 28, 2024, down from $468,547 thousand on December 30, 2023, a decrease of 13.9%[58] - The Company recorded total other intangible assets, net of $465.9 million as of December 28, 2024, compared to $489.1 million as of December 30, 2023, reflecting a decrease of approximately 4.9%[62] Acquisitions and Goodwill - The company acquired TDBBS, LLC for approximately $60 million, enhancing its portfolio in the pet product segment and increasing eCommerce capabilities[54] - The company’s goodwill from the TDBBS acquisition was recorded at $4,925 thousand, contributing to the overall net assets acquired[56] - The Company evaluated goodwill for impairment and determined that no impairment testing was necessary for the three months ended December 28, 2024[63] - The Company has recorded a goodwill impairment charge for the three months ended December 28, 2024, and December 30, 2023, but specific amounts were not disclosed[5] Risk Management and Compliance - The company has not experienced any losses from cash accounts exceeding federally insured limits, indicating effective credit risk management[36] - The Company has not experienced any product recalls that would materially affect its financial position or operations[98] - Management believes that ongoing legal proceedings will not have a material impact on the Company's consolidated financial statements[97] - The Company continues to pursue defenses in ongoing litigation and believes it will prevail on the merits regarding the head start damages issue[97] - The Company has not identified any material changes in exposure to market risk since the last annual report[154] - The Company is actively monitoring product liability issues but has not faced any significant challenges that would impact financial results[98] Internal Controls - There have been no changes in internal control over financial reporting that materially affected the Company during the first quarter of 2025[155] - The Company’s disclosure controls and procedures were deemed effective as of December 28, 2024[154]