Stock Price & Analysis

Sell CENTA stock as it has been added to the Zacks Rank #5 (Strong Sell) list with downward earnings estimate revisions, despite its recent earnings beat. The stock has underperformed the market year-to-date and faces mixed analyst sentiment.

Price Prediction for CENTA Stock in 2025

Based on current trends and analysis, CENTA stock is expected to trade between $28.00 and $34.00 in 2025.

1. Current Price and Trends: CENTA is currently trading at $30.90 as of March 25, 2025, with a market cap of $2.02 billion. The stock has shown mixed performance, underperforming the market year-to-date despite strong Q1 earnings.

2. Earnings and Revenue Growth: CENTA reported a significant earnings surprise of 800% for Q1 fiscal 2025, with EPS of $0.21 beating estimates of -$0.03. Revenue also exceeded expectations, growing 3.3% year-over-year to $656.44 million. However, the stock has struggled to gain momentum, reflecting broader market skepticism.

3. Technical Analysis:

   • The stock is currently testing support levels near $30.57, with resistance at $32.58.
   • The Relative Strength Index (RSI) of 38.91 suggests the stock is oversold, indicating potential for a near-term rebound.

4. Fibonacci Levels:

   • Fibonacci Support Levels: $30.57 (S1) and $29.96 (S2).
   • Fibonacci Resistance Levels: $32.58 (R1) and $33.19 (R2).

5. Analyst Sentiment: CENTA has a Zacks Rank #3 (Hold), reflecting mixed analyst sentiment. While the company has a history of beating earnings estimates, downward revisions in earnings expectations have raised concerns.

6. Price Prediction:

   • Bearish Scenario: If earnings estimates continue to decline and market conditions remain challenging, CENTA could test the lower end of the range near $28.00.
   • Bullish Scenario: If the company maintains its revenue growth and margins, the stock could rebound toward $34.00, driven by improved investor sentiment and potential upside from share buybacks.

This prediction is based on technical analysis, earnings trends, and market sentiment. Investors should monitor earnings updates and broader market conditions for further clarity.

The S1 support level for CENTA Stock is $30.55 ,The R1 resistant level for CENTA Stock is $32.55.

As of the end of day on 2025-03-28, the price of CENTA Stock was $32.12.

The market cap of CENTA is $2.1B.

CENTA appears overvalued based on its high price-to-earnings (P/E) ratio of 16.83-22.69, exceeding industry averages for consumer discretionary goods. Its EV/EBITDA ratio of 7.91-8.74 also suggests a premium valuation compared to peers. While the price-to-sales (P/S) ratio of 0.71-0.81 is relatively low, the price-to-book (P/B) ratio of 1.58-1.91 indicates a higher valuation relative to book value. The lack of dividend yield (0%) further limits its appeal for income-focused investors. Recent earnings surprises and revenue growth (4.15% in Q1) have not translated into stock price gains, raising concerns about market expectations. With a Zacks Rank #5 (Strong Sell) and downward earnings revisions, CENTA's valuation may not justify its current price levels.

Central Garden & Pet Company is engaged in the garden and pet industries. The Company offers a diverse portfolio of more than 65 brands, including Amdro, Aqueon, Cadet, C and S, Farnam, Ferry Morse, Four Paws, Kaytee, Nylabone, and Pennington. The Company’s segments include Pet and Garden. The Pet segment includes dog and cat supplies such as dog treats and chews, toys, pet beds and grooming products, waste management and training pads, pet containment; supplies for aquatics, small animals, reptiles and pet birds including toys, cages and habitats, bedding, food and supplements, and products for equine and livestock, animal and household health and insect control products. The Garden segment includes lawn and garden consumables such as grass seed, vegetable, flower and herb packet seed, and wild bird feed, bird houses and other birding accessories. It also manufactures large commercial drones used for mosquito/vector control, weed control, and precision farming.

Central Garden & Pet Co (CENTA) is expected to reach a stock price of $45 by 2030, driven by its strong earnings momentum and market position in the pet and garden industries. The company has consistently beaten earnings estimates, with an 800% earnings surprise in Q1 2025, and its diverse portfolio of over 65 brands positions it well for long-term growth. However, the stock's current underperformance relative to the market and mixed earnings estimate revisions suggest a cautious outlook.

CENTA has a total of 6100 employees.