A specialist in "breakout" candidates, Leo Fasciocco sees upside potential in Hansen Natural (NASDAQ: HANS), a maker of sodas, juices and teas.
In his Ticker Tape Digest, the technical advisor says, "The company is showing tremendous profit growth. And at current prices, he says, the shares are attractive for value and growth investors.
The company, he notes, has expanded its drink line to include a wide variety of energy drinks, such as the popular Monster brand. Its other products are fruit juice, smoothies, lemonade, iced tea, and spring water -- most of which are sold under the Hansen's brand name.
He points out that the company is also branching out with soy drinks and juices aimed at toddlers.
Technically, he explains, the stock's daily chart of HANS shows a breakout; its momentum indicator is very bullish and getting stronger. The analys adds, "The accumulation - distribution line is making new peaks. That shows the price advance is being supported by good buying."
HANS reported in May that sales for the first quarter increased 38% and according to Fasciocco, net for the second quarter should show a 34% gain. Next year, he points out, analysts predict profits will increase 33% to $1.95 a share from the anticipated $1.46 a share this year.
Meanwhile, he says, the stock sells with a price-earnings ratio of 27,m whic in light of its growth rate can be viewed as attractive for value-growth investors.
He also is impressed with the stock's institutional sponsorship, which he rates as excellent. Indeed, he notes, the top two fund holders have a 5-star rating, which is the highest possible. Amana Trust holds a 5.2% stake and Fidelity Low-Priced Stock Fund has a 3.7% stake.
He notes, "The largest buyer recently was Artisan Mid-Cap Fund, which purchased 1.4 million shares. Meanwhile, CEO Rodney Sacks and vice chairman Hilton Schlosberg each own 20% of the stock."
Fasciocco concludes, "The stock has broken out from an eight-week, flat base expanding volume and its higher could well be a move to reach its all-time high at 52.72. For now, we are targeting a move to 50 within the next six months. A protective stop can be placed near 37."
For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
Deere up on Q4 earnings performance
Reid Hoffman: LinkedIn will go public (at some point)
