Central Garden & Pet Company (CENTA): Impressive Quarter, But Valuation Now Expensive

Central Garden & Pet Company’s stock (NASDAQ:CENTA) has been rated as Buy by BofA/Merrill. This latest rating was contained in a recent research note published by the firm on March 18, 2020 and has set a $33 price target for the stock. Some experts on Wall Street have also posted a report on Central Garden & Pet Company (CENTA) stock.

BofA/Merrill rated the stock as a Neutral in a research noted published on November 27, 2019. Monness Crespi & Hardt rated the stock as a Buy in a research note published on August 02, 2019.

As it stands, a total of 6 analysts are covering CENTA stock, with 3 of them rating it as a Buy while 0 of them rating it as Overweight. 3 analysts meanwhile advised investors to Hold, 0 rated it as Underweight while the 0 rated it as a Sell. A look at the overall ratings means that Central Garden & Pet Company (CENTA) stock has an average rating of Overweight.

Central Garden & Pet Company (CENTA) which is currently valued at 1.24 billion, with the company publishing its last earnings report on 02/05/2020, for the recent quarter of 2019. In that quarter, the company recorded a revenue of 705.76 million, which was lower than the forecast of 726.37 million made by some analysts. For that same quarter, Central Garden & Pet Company (CENTA) posted $0.72 earnings per share (EPS) which was above the analyst consensus estimate of $0.68 by $0.04, which represents an increase by 5.90%.

The stock market has a tendency to become sophisticated sometimes, even for seasoned investors and traders. Even when a trader got what he/she had expected, the market sometimes decides to move in the opposite direction. This volatility sometimes leads to some traders doubting and second-guessing their moves. This is why getting to know historical price performance, as well as both long-term and short-term trends, is very important. Over the past one week, CENTA price has surged by 2.13%. A look at its price performance over the past three months sees the stock go down by -4.78%, while it has gain 8.57% over the past six months and 24.40% since the start of the year.

Let us now look at some of its likely support and resistance level. Recent research on Central Garden & Pet Company (CENTA) has seen its stock trading -9.54% below its three-month high price. A look at the other side also sees stock trading +34.86% above its three-month low. A wider look sees CENTA trading -9.54% below its 52-week high and 42.45% above from its 52-week low price.

Let us now take a look at Central Garden & Pet Company (CENTA)’s trading volatility. Its 7-day volatility is around 4.54%, while it has a monthly volatility of 5.43%. CENTA has an ATR (Average True Range) of 1.75. The volatility of a stock is an indication of the stock’s drop or gain in case the wider market drops or surges. A beta score higher than 1 means that a stock is highly volatile while below 1 means that the volatility of a stock is low.

The price of CENTA moved down by -$0.7 during the normal trading session on Tuesday to trade at $29.21. The Central Garden & Pet Company (CENTA) stock has a trading volume of 215632.0 shares, which is low, compared to its average daily volume of 364.77K shares.