Where Honest Co Stands With Analysts

Honest Co HNST has been analyzed by 5 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $7.5, a high estimate of $9.50, and a low estimate of $7.00. This upward trend is evident, with the current average reflecting a 8.7% increase from the previous average price target of $6.90.

Decoding Analyst Ratings: A Detailed Look

The perception of Honest Co by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Honest Co. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Honest Co compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Honest Co's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Honest Co's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

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Delving into Honest Co's Background

The Honest Co Inc is a digitally-native consumer products company to makes purpose-driven consumer products designed for all people. It is an omnichannel brand, ensuring its products are available wherever its consumers shop through the company's Retail and Digital channels. It has three product categories namely; Diapers and Wipes, Skin and Personal Care, and Household and Wellness, out of which the majority of its revenue is generated from the sale of diapers and wipes. The company operates only in the United States.

Financial Milestones: Honest Co's Journey

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Honest Co's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 15.17%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Staples sector.

Net Margin: Honest Co's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 0.17%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 0.13%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Honest Co's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.08%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Honest Co's debt-to-equity ratio is below the industry average at 0.18, reflecting a lower dependency on debt financing and a more conservative financial approach.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.