4-Star Stocks Poised to Pop: Hansen Natural
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, energy drink specialist Hansen Natural (NAS: HANS) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Hansen's business and see what CAPS investors are saying about the stock right now.
Hansen facts
Headquarters (Founded) | Corona, Calif. (1985) |
Market Cap | $7.7 billion |
Industry | Soft drinks |
Trailing-12-Month Revenue | $1.5 billion |
Management | Chairman/CEO Rodney Sacks COO/CFO Hilton Schlosberg |
Return on Equity (Average, Past 3 Years) | 30.1% |
Cash/Debt | $699.4 million / $1.3 million |
Competitors | PepsiCo (NYS: PEP) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 93% of the 1,810 members who have rated Hansen believe the stock will outperform the S&P 500 going forward. These bulls include AC07 and ThreeOfClubs.
Just last month, AC07 tapped the stock as a tasty way to go for growth: "Hansen's expansion into new markets like Europe will help the company grow substantially. A venture into relaxation drinks in the US could be profitable as well."
Over the next five years, in fact, Hansen is expected to grow its bottom line at a solid rate of 14.5% annually. That's faster than much bigger beverage stocks like PepsiCo (8.5%), Coca-Cola (NYS: KO) (9.2%), and Dr Pepper Snapple Group (NYS: DPS) (9%).
CAPS member ThreeOfClubs elaborates on the bull case:
Hansen is currently in the best position to benefit from staggering growth numbers in its industry.
Energy drink sales have been growing at an incredible rate over the last few years and monthly convenience store data only adds to this story. ...
They are the only public energy drink company (not including KO and PEP failures AMP and Full Throttle, respectively). They also happen to be the leader in market share -- a lead that keeps on growing. They have had the ability to gain this market share despite having the largest increase in price among their main rivals over the last two years.
Simply put, the company's management has had incredibly successful product introductions, and the company continues to produce. There is some cause for concern in the way they handle their hedging ... but HANS manages to stay debt free year after year and has the highest ROIC in the industry.
What do you think about Hansen, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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