Here's Why You Should Add Hawkins Stock to Your Portfolio Now

Hawkins, Inc.’s HWKN shares have rallied roughly 31.5% over the past three months. It is benefiting from the strength in its Water Treatment segment and strategic acquisitions.

We are positive about HWKN’s prospects and believe that the time is right for you to add the stock to your portfolio, as it looks promising and is poised to carry the momentum ahead.

Let’s take a look at the factors that make this Zacks Rank #2 (Buy) stock a compelling choice for investors right now.

Hawkins’ Stock Outperforms Industry

HWKN has outperformed the industry it belongs to over the past year. The company’s shares have rallied 52.8% compared with the industry’s 1.4% growth.

Healthy Earnings Growth Prospects for HWKN

The Zacks Consensus Estimate for earnings for fiscal 2026 for Hawkins is currently pegged at $4.37 per share, reflecting an expected year-over-year growth of 8.4%.

HWKN’s Earnings Estimates Northbound

Earnings estimates for HWKN have been going up over the past 60 days. The Zacks Consensus Estimate for fiscal 2026 has increased 2.6%. The consensus estimate for the fiscal first quarter has also been revised 3.1% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.

Hawkins’ Strategic Measures Bode Well

Hawkins is seeing strong growth in its Water Treatment segment, reflecting its strategic emphasis on the water treatment sector, including the successful integration of recent acquisitions. Its revenues went up 10% year over year to a record $245.3 million in the fiscal fourth quarter, driven by Water Treatment segment sales growth of 21%.

The acquisition of Industrial Research Corporation aligns with Hawkins’ growth strategy in central and northern Louisiana, eastern Texas and southern Arkansas, complementing its existing operations and enhancing its market presence. The Wofford Water Service buyout also extended HWKN’s reach in Mississippi and supported its expansion in the southern United States, where its Water Treatment business had been limited previously. The Amerochem assets and WaterSurplus acquisitions further strengthened its Water Treatment footprint. HWKN’s judicious pricing strategy to counter cost inflation is also supporting results. It also remains committed to enhancing shareholders’ value.

Other Stocks to Consider

Other top-ranked stocks in the basic materials space are Carpenter Technology Corporation CRS, Alamos Gold Inc. AGI and ATI Inc. ATI.

Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 131.4% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Alamos Gold's current-year earnings is pegged at $1.29 per share. AGI, sporting a Zacks Rank of 1 at present, surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while missing twice, with an average earnings surprise of 1.4%. The company's shares have rallied 60.1% in the past year.

ATI, which currently carries a Zacks Rank of 2, beat the consensus estimate in three of the trailing four quarters, while missing once. In this time frame, it has delivered an earnings surprise of roughly 12.5%, on average. The company's shares have rallied 39.8% in the past year.


 

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This article originally published on Zacks Investment Research (zacks.com).

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