Stock of the Day

December 16, 2019

Central Garden & Pet (CENT)

$42.98
-$0.82 (-1.9%)
Market Cap: $2.74B

About Central Garden & Pet

Central Garden & Pet Co. engages in the production and distribution of branded and private label products for the lawn, garden, and pet supplies markets. It operates through the Pet and Garden segments. The Pet segment focuses on dog and cat supplies such as dog treats and chews, toys, pet beds and containment, grooming products, waste management and training pads, supplies for aquatics, small animals, reptiles and pet birds including toys, cages and habitats, bedding, food and supplements, products for equine and livestock, animal and household health and insect control products, live fish, and small animals, as well as outdoor cushions. The Garden segment includes lawn and garden consumables such as grass, vegetable, flower and herb seed, wild bird feed, bird houses and other birding accessories, weed, grass, and other herbicides, insecticide and pesticide products, fertilizers, and live plants. The company was founded by William E. Brown in 1980 and is headquartered in Walnut Creek, CA.

Today's Trend

Central Garden & Pet Company (NASDAQ: CENT) has been trading higher and remains near its 52-week high. Recent coverage is broadly mixed: valuation factors may support the stock, but analysts maintain a cautious “Hold” view and project limited earnings growth.

  • Zacks is reviewing whether Central Garden & Pet may be undervalued based on value, growth, momentum, earnings estimates and estimate revisions. A favorable valuation assessment could support investor interest. Are Investors Undervaluing Central Garden & Pet (CENT) Right Now?
  • Zacks Research reiterated a “Hold” stance while issuing a series of long-range earnings forecasts. Estimates call for EPS of $2.94 in fiscal 2026, $2.93 in fiscal 2027 and $3.02 in fiscal 2028, indicating relatively modest earnings expansion. Quarterly forecasts include seasonal losses of $0.10 in fiscal Q4 2026 and $0.05 in fiscal Q4 2027, offset by stronger spring and summer quarters.
  • The fiscal 2026 and fiscal 2027 EPS forecasts of $2.94 and $2.93 are below the current full-year consensus estimate of $3.00, potentially limiting near-term upside unless estimates are revised higher. The cautious outlook follows the company’s latest quarter, when revenue declined 8.2% year over year despite a slight EPS beat.

Overall, the news provides a possible valuation argument for CENT, but the lack of a Buy rating and estimates generally around or below consensus suggest that the recent strength is not being matched by significant forecast upgrades.

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