Latest news with #HillmanSolutionsCorp
Yahoo
3 days ago
- Business
- Yahoo
Hillman Solutions Corp. (HLMN) is an Incredible Growth Stock: 3 Reasons Why
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all. By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss. However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks. Our proprietary system currently recommends Hillman Solutions Corp. (HLMN) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank. Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). While there are numerous reasons why the stock of this company is a great growth pick right now, we have highlighted three of the most important factors below: Earnings Growth Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for Hillman Solutions Corp. is 24.9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 12.9% this year, crushing the industry average, which calls for EPS growth of 8.6%. Cash Flow Growth Cash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds. Right now, year-over-year cash flow growth for Hillman Solutions Corp. is 12.5%, which is higher than many of its peers. In fact, the rate compares to the industry average of 2.7%. While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 40.2% over the past 3-5 years versus the industry average of 10%. Promising Earnings Estimate Revisions Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. The current-year earnings estimates for Hillman Solutions Corp. have been revising upward. The Zacks Consensus Estimate for the current year has surged 3.1% over the past month. Bottom Line Hillman Solutions Corp. has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination indicates that Hillman Solutions Corp. is a potential outperformer and a solid choice for growth investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hillman Solutions Corp. (HLMN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
28-07-2025
- Business
- Yahoo
Conestoga Capital Advisors' Views on Hillman Solutions Corp. (HLMN)
Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Micro Cap Composite appreciated 15.65% net-of-fees in the second quarter but underperformed the Russell Microcap Growth Index's 20.92% return. In a highly volatile market led by high-beta and lower-quality stocks, the firm does not expect the fund to align with index performance. Please review the fund's top 5 holdings to gain insight into their key selections for 2025. In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Hillman Solutions Corp. (NASDAQ:HLMN). Hillman Solutions Corp. (NASDAQ:HLMN) offers hardware-related products and related merchandising services. The one-month return of Hillman Solutions Corp. (NASDAQ:HLMN) was 13.03%, and its shares lost 18.81% of their value over the last 52 weeks. On July 25, 2025, Hillman Solutions Corp. (NASDAQ:HLMN) stock closed at $8.07 per share, with a market capitalization of $1.594 billion. Conestoga Capital Advisors stated the following regarding Hillman Solutions Corp. (NASDAQ:HLMN) in its second quarter 2025 investor letter: "Hillman Solutions Corp. (NASDAQ:HLMN) is the leading distributor of hardware, home improvement products, and robotic kiosk technologies to a broad range of retailers. Hillman leverages its 1,100-person direct sales force to manage over 114,000 SKU's for 42,000 retail locations. HLMN reported inline 1Q results but highlighted the potential for $250 million in additional costs if liberation day tariff levels were enacted. While the company feels comfortable it can raise prices dollar-for dollar, this would still impact gross margins by 300 bps annually." Workers in protective clothing assembling hardware products on a production line. Hillman Solutions Corp. (NASDAQ:HLMN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 21 hedge fund portfolios held Hillman Solutions Corp. (NASDAQ:HLMN) at the end of the first quarter compared to 24 in the previous quarter. In the first quarter of 2025, Hillman Solutions Corp. (NASDAQ:HLMN) reported net sales of $359.3 million, reflecting a 2.6% increase compared to the first quarter of 2024. While we acknowledge the potential of Hillman Solutions Corp. (NASDAQ:HLMN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Hillman Solutions Corp. (NASDAQ:HLMN) and shared the list of most undervalued stocks with smart money ratings. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
21-02-2025
- Business
- Yahoo
Hillman Solutions Corp. Just Missed Earnings - But Analysts Have Updated Their Models
Last week, you might have seen that Hillman Solutions Corp. (NASDAQ:HLMN) released its annual result to the market. The early response was not positive, with shares down 3.0% to US$10.12 in the past week. It was not a great result overall. While revenues of US$1.5b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 18% to hit US$0.09 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. See our latest analysis for Hillman Solutions After the latest results, the eight analysts covering Hillman Solutions are now predicting revenues of US$1.53b in 2025. If met, this would reflect a credible 4.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 145% to US$0.21. In the lead-up to this report, the analysts had been modelling revenues of US$1.54b and earnings per share (EPS) of US$0.23 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts. The consensus price target held steady at US$13.28, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Hillman Solutions, with the most bullish analyst valuing it at US$16.00 and the most bearish at US$11.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable. One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Hillman Solutions' growth to accelerate, with the forecast 4.1% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Hillman Solutions is expected to grow at about the same rate as the wider industry. The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hillman Solutions. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$13.28, with the latest estimates not enough to have an impact on their price targets. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Hillman Solutions analysts - going out to 2027, and you can see them free on our platform here. It is also worth noting that we have found 1 warning sign for Hillman Solutions that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
