Even as someone who isn't all that interested in the “healthy lifestyle”
trends of today, I find it interesting to see the sort of visceral
reactions that stocks like Hain Celestial (Nasdaq:HAIN), White Wave (Nasdaq:WWAV), and Annie's (Nasdaq:BNNY)
provoke in investors/readers. In particular, there appears to be a very
vocal percentage out there that are just incensed over the valuation
and attention these stocks get and absolutely insistent that
healthy/organic eating is just a fad.
Whether it's a fad or not (I happen to lean toward “not”, even though I
don't participate), there's no question that these stocks have
generated some sizable expectations on the Street. As one of the
veterans of the sector, Hain Celestial is a good case in point – today's
valuation already more than incorporates assumptions that Hain will
significantly outgrow the packaged food sector and generate
above-average long-term profits. So much so, in fact, that I find it
hard to see how the company can live up to (or grow into) these
expectations.
Please read more here:
http://www.investopedia.com/stock-analysis/082213/hain-celestials-valuation-already-incorporates-strong-expectations-hain-wwav-krft-k.aspx
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