HANS Hansen Natural Corp. (MM)

Hansen Natural Corp. (HANS) has produced big gains in 2011, recently rebounding from a small pull back to move back within striking distance of the all-time high. With estimates on the rise and a bullish growth projection, this Zacks #1 Rank stock offers a refreshing take on momentum.

Company Description

Hansen Natural Corp, through its subsidiaries, develops and sells specialty beverages in the United States and internationally. The company was founded in 1985 and has a market cap of $7.1 billion.

Hansen Natural is one of those rare stocks that jumps in an up market but holds tough in a weak market. That was recently on display when strong Q2 results lifted shares back within striking distance of the all-time high.

Second-Quarter Results

Revenue for the period was up 27% from last year to $528 million. Earnings also came in strong at 90 cents, 8% ahead of the Zacks Consensus Estimate.

The strong results were driven by the company's DSD segment, home of the popular Monster Energy drinks, where sales were up 28% from last year to $437 million.

Financial Profile

Hansen will continue to benefit from its awesome financial profile, with cash and short-term investments of $699 million and no long-term debt.

Estimates

We saw some decent movement in estimates off the good quarter, with the current year adding 11 cents to $3.02. The next-year estimate is projecting 17% earnings growth.

Valuation

In light of the recent gains, Hansen's PEG ratio of 1.59 is above the traditional benchmark of 1 for value.

12-Month Chart

On the chart, HANS recently rebounded from some short-term volatility to move back within striking distance on the all-time high. Look for support from the trend on any weakness.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
 
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