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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Central Garden (CENT - Free Report) Central Garden & Pet Company is headquartered in Walnut Creek, California and operates primarily across North America. Committed to product innovation, the company is looking to strengthen its position as one of the leading companies in the U.S. pet supplies and lawn and garden supplies space. The company continues to pursue disciplined M&A activities to enhance its portfolio and strengthen its competitive position.

CENT is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Consumer Discretionary stock. CENT has a Momentum Style Score of A, and shares are up 1.7% over the past four weeks.

Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.09 to $2.93 per share. CENT also boasts an average earnings surprise of +41.8%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CENT should be on investors' short list.

WALNUT CREEK, Calif.--(BUSINESS WIRE)---- $CENT #CentralToHome--Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA), a leading consumer goods company in the pet and garden industries, today announced that Brad Smith, Central's Chief Financial Officer, will participate in virtual investor meetings hosted by KeyBanc Capital Markets on September 1, 2026. For registration and participation details, please contact your KeyBanc Capital Markets sales representative. A replay of the group meeting will be posted aft.

William E. Brown, Chairman of Central Garden & Pet(CENT +0.23%), executed a sale of 3,900 shares of Class A Common Stock on Aug. 13, 2026, according to a SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$152,100Shares sold3,900Post-transaction shares (total)1.3 millionPost-transaction shares (directly held)949,258Post-transaction shares (indirectly held)350,259Post-transaction value$57.7 millionTransaction value based on SEC Form 4 weighted average sale price ($39); post-transaction value based on Aug. 13, 2026, market close ($44.44).

Key questionsWhat was the specific nature and structure of this equity disposition?
The transaction was an open-market sale of Class A Common Stock held by various family Irrevocable Trusts. Brown and his spouse serve as co-trustees and share investment control over these trusts, though they disclaim beneficial ownership except to the extent of their pecuniary interest.How does this sale align with the Chairman's total equity exposure?
The 3,900 shares sold represent 1% of the indirect holdings within the Irrevocable Trusts. The Chairman's direct ownership of approximately 949,000 shares was unaffected by this filing, leaving his total beneficial interest relatively unchanged.What is the current market valuation and performance context for Central Garden & Pet?
As of the Aug. 14, 2026, market close, shares were priced at $43.73. The sale occurred shortly after the stock achieved a 20% total return over the 12 months ending on the transaction date.Company OverviewMetricValueShare Price (as of market close 2026-08-14)$43.73Market Capitalization$2.4 billionRevenue (TTM)$3.1 billionNet Income (TTM)$166.3 millionCompany SnapshotCentral Garden & Pet operates as a market leader in the U.S. pet and garden industries, generating revenue through two primary segments: the Pet segment, which offers dog and cat supplies including treats, chews, toys, and grooming items, and the Garden segment, which provides grass seed, wild bird feed, weed and insect control products, and fertilizers under established brands such as Pennington and Sevin.The company's business model is predicated on manufacturing and distributing a diversified portfolio of products across complementary categories, leveraging established brand equity and distribution networks to capture market share in the resilient pet care and lawn and garden categories.Central Garden & Pet serves a broad consumer base, including pet owners, gardeners, and homeowners, with distribution through retail channels, e-commerce platforms, and specialty retailers, positioning the company to benefit from secular trends in pet ownership and home and garden spending.Central Garden & Pet is a diversified consumer products manufacturer with approximately $3.1 billion in annual revenue and 6,000 employees, commanding a significant market position in the defensive consumer staples sector. The company's dual-segment strategy provides revenue diversification while capitalizing on structural demand drivers, including elevated pet ownership rates and sustained consumer investment in residential outdoor spaces. Central's competitive advantages are anchored in established brand portfolios, extensive distribution relationships, and operational scale within categories characterized by high consumer switching costs and recurring purchase patterns.

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What this transaction means for investorsWith the indirect sale of 3,900 shares, this appears to be a routine sale from Brown rather than something shareholders should be concerned about. Not only does the executive still indirectly hold over 350,000 shares, but he also holds 949,258 shares directly. That shows alignment with the company's success, as Brown has as much reason as any other shareholder to root for it, given his extensive holdings. Thus far in 2026, the CENT stock price has climbed 36.2%, so Brown is likely just selling into strength. In comparison, the S&P 500 has only climbed 12.6% in the same period.

The company is coming off a strong earnings report for its fiscal second quarter of 2026. Central reported net sales of $906 million, an increase from the prior-year period of $834 million. It also reported operating income of $114 million, an increase from $93 million. And finally, its net income was $79 million, up from $64 million. While the stock doesn't receive much analyst coverage, the outlook still looks favorable for Central. Of the five analysts who cover the stock, 80% rate it a buy and 20% a sell, according to CNN. From that analyst group, the median one-year price target is $50, representing a 14.1% gain from today's price.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Central Garden (CENT - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.

Central Garden is one of 260 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Central Garden is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for CENT's full-year earnings has moved 3.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, CENT has gained about 38.2% so far this year. Meanwhile, the Consumer Discretionary sector has returned an average of -6.2% on a year-to-date basis. As we can see, Central Garden is performing better than its sector in the calendar year.

One other Consumer Discretionary stock that has outperformed the sector so far this year is Gray Media (GTN - Free Report) . The stock is up 4.3% year-to-date.

The consensus estimate for Gray Media's current year EPS has increased 29.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Central Garden belongs to the Consumer Products - Discretionary industry, a group that includes 28 individual companies and currently sits at #96 in the Zacks Industry Rank. Stocks in this group have gained about 15% so far this year, so CENT is performing better this group in terms of year-to-date returns.

In contrast, Gray Media falls under the Broadcast Radio and Television industry. Currently, this industry has 15 stocks and is ranked #98. Since the beginning of the year, the industry has moved -12.9%.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to Central Garden and Gray Media as they could maintain their solid performance.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Central Garden (CENT - Free Report) Central Garden & Pet is headquartered in Walnut Creek, California and operates primarily across North America. Committed to product innovation, Central Garden & Pet Company is looking forward to strengthening its position as one of the leading companies in the U.S. pet supplies and lawn and garden supplies space. Unique packaging, point-of-sale displays, logistics capabilities and a high level of customer service are some of its key growth catalysts.

CENT is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Consumer Discretionary stock. CENT has a Momentum Style Score of B, and shares are up 3.5% over the past four weeks.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $2.92 per share. CENT also boasts an average earnings surprise of +41.8%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CENT should be on investors' short list.

3 Small-Cap Stocks on the Way to Bigger and Better DaysCentral Garden & Pet NASDAQ: CENT executives said the company is entering a period of record profitability, expanding margins and increased acquisition activity as it simplifies its operating structure and pursues growth in pet and garden products.

Speaking at Canaccord’s 46th Annual Growth Conference, Chief Executive Officer Niko Lahanas said the company’s year-to-date results included record earnings, EBIT, EPS, cash flow and cash balances. He said the Garden segment posted a record quarter and that the company’s fiscal third-quarter EPS was its second-highest ever, despite what he described as a difficult comparison period.

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MarketBeat ‘Stock of the Week’: Central Garden & Pet Lahanas also pointed to Central Garden & Pet’s pending acquisition of an 80% interest in European pet-supplies company TRIXIE, which he said is expected to close in January or February of next year. The transaction represents a major international expansion for the company, bringing foreign-exchange exposure as well as a presence in Europe.

TRIXIE Deal Expands European Pet Presence Lahanas described TRIXIE as Europe’s largest pet-supplies business and said combining it with Central’s operations would create what he called the largest global pet-supplies business. He said the transaction offers a platform for further European consolidation, citing a fragmented market and lower acquisition multiples than those seen in the U.S.

Growth Ahead for Central Garden & PetThe CEO said TRIXIE also increases Central’s exposure to cat products, an area where the company’s existing presence is limited. About 20% to 25% of TRIXIE’s business is related to cats, according to Lahanas. He said Central sees continued opportunity in cat products, citing cats’ lower-maintenance nature for consumers.

Central ended its fiscal third quarter with nearly $1 billion in cash and has not tapped its asset-based lending facility, giving it nearly $2 billion of available capital, Lahanas said. He estimated the TRIXIE transaction could total more than $400 million, assuming earn-out payments are achieved.

“Deals beget deals,” Lahanas said, adding that Central has received more inbound acquisition interest following the TRIXIE announcement. He said the company has completed more than 60 acquisitions over its 40-year history and considers M&A a core part of its strategy, particularly in mature categories where acquisitions can alter competitive positioning more quickly than organic growth alone.

Simplification Efforts Support Margins Management attributed improving profitability in part to cost reductions, logistics consolidation and portfolio optimization. Lahanas said the company has focused on exiting or restructuring businesses where it lacks a “right to win” or where channel dynamics have changed structurally.

Central recently announced the divestiture of its pet distribution business through a joint venture in which it will retain a 20% stake. Lahanas said the distribution operation had a large customer base, a SKU count approaching 40,000, fuel exposure, trucking costs and workers’ compensation costs, while generating relatively low margins.

The joint venture structure will preserve Central’s access to independent pet retailers and the product innovation taking place in that channel, while keeping the business out of its consolidated financial results, he said. Lahanas added that independent pet retailers face pressure from food, drug and mass retailers, e-commerce, convenience and subscription models.

He said Central has structurally improved its profitability, noting that the pet business has a gross margin “with a four in front of it” and EBITDA margins of approximately 19% on the pet side. The Garden business can generate similar margins during its season, he said.

Garden Portfolio Helps Offset Weather Volatility Jason Barnes, executive vice president of Garden Consumer Products, said Central’s garden portfolio differs from competitors because of its breadth. In addition to categories shared with companies such as The Scotts Miracle-Gro Company and Spectrum Brands, Central operates in wild bird, live goods and packet seeds.

That diversification can help moderate weather-related volatility, Barnes said. Wild bird products, for example, can perform better in colder conditions than traditional spring garden categories.

Weather remained a major factor during the most recent garden season. Barnes said a strong March and early April gave way to a difficult May, as the market shifted from cold and wet weather to a heat dome without a typical spring period. He said the company’s ability to manage costs and its profit-and-loss structure helped it navigate the volatility and still deliver a record Garden quarter.

Executives also highlighted continued strength in wild bird products. Lahanas said the category gained younger consumers during the pandemic and has remained resilient. Central introduced its Feeding Frenzy product line at Walmart roughly a year ago, supported by new packaging and digital marketing.

E-Commerce, Data and Value Remain Priorities E-commerce accounts for about 26% of Pet sales and about 10% of Garden sales, Lahanas said. Barnes said Central expects Garden e-commerce penetration to expand by another 200 basis points this year, supported by its direct-to-consumer pest-control capabilities and growth across both pure-play and omnichannel retail.

Beyond acquisitions and share repurchases, Central plans to invest in its data infrastructure, artificial intelligence capabilities, logistics network and robotics. Lahanas said the company’s acquisition history has left data insufficiently integrated, and management sees improved data organization as necessary to use AI tools effectively.

On consumer demand, Lahanas said shoppers remain focused on value, particularly at the lower end of the income spectrum. He cited the company’s Bully Hide pet product and The Rebels value-tier grass seed brand as examples of products designed to provide lower-priced options while maintaining quality.

About Central Garden & Pet (NASDAQ:CENT)Central Garden & Pet NASDAQ: CENT is a leading North American specialty retailer, manufacturer and distributor serving the lawn and garden and pet supplies markets. The company operates through two primary segments: Pet and Garden. In the Pet segment, Central Garden & Pet offers a comprehensive range of products including pet food, treats, accessories, training products and habitat solutions for dogs, cats, birds, fish and small animals. The Garden segment encompasses a wide array of lawn, garden and outdoor living products, such as soils, fertilizers, planters, pest control solutions, landscape lighting and watering equipment.

Central Garden & Pet's product portfolio includes both proprietary and branded offerings.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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LOS ANGELES, Aug. 06, 2026 (GLOBE NEWSWIRE) -- The 2026 Pet Innovation Awards today announced that Nubz® Flavor Bursts , an innovative dog treat from Nylabone, an iconic brand in the Central Garden & Pet portfolio (NASDAQ: CENT) (NASDAQ: CENTA), is the winner of “Flavored Dog Treat Product of the Year.” The Pet Innovation Awards is an independent recognition platform highlighting the most innovative companies, services, and products in the highly competitive Pet Care industry.

Central Garden & Pet Company (CENT) Q3 2026 Earnings Call August 5, 2026 4:30 PM EDT

Company Participants

Friederike Edelmann - Vice President of Investor Relations
Nicholas Lahanas - CEO & Director
Brad Smith - Chief Financial Officer
John Hanson - President of Pet Consumer Products
Jason Barnes - Executive Vice President of Garden Consumer Products
J. Walker - President of Garden Consumer Products

Conference Call Participants

Taylor Zick - KeyBanc Capital Markets Inc., Research Division
Will Gildea - CJS Securities, Inc.
Brian McNamara - Canaccord Genuity Corp., Research Division
Shovana Chowdhury - JPMorgan Chase & Co, Research Division
James Chartier - Monness, Crespi, Hardt & Co., Inc., Research Division
Hale Holden - Barclays Bank PLC, Research Division

Presentation

Operator

Ladies and gentlemen, thank you for standing by. Welcome to Central Garden & Pet's Fiscal 2026 Third Quarter Earnings Call. My name is Cleo, and I will be your conference operator for today. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the call over to Friederike Edelmann, Vice President, Investor Relations. Please go ahead.

Friederike Edelmann
Vice President of Investor Relations

Good afternoon, everyone, and thank you for joining Central's Third Quarter Fiscal 2026 Earnings Call. Joining me today are Niko Lahanas, Chief Executive Officer; Brad Smith, Chief Financial Officer; John Hanson, President of Pet Consumer Products; J.D. Walker, President of Garden Consumer Products; as well as Jason Barnes, EVP of Garden Consumer Products.

Niko will begin by highlighting today's key takeaways followed by Brad, who will walk through our financial performance and the acquisition of TRIXIE in greater detail. After their prepared remarks, John, J.D. and Jason will join us for the Q&A session.

Before we get started, I would like to remind everyone that all forward-looking statements made during this call are subject to risks and uncertainties that could

3 Small-Cap Stocks on the Way to Bigger and Better DaysCentral Garden & Pet NASDAQ: CENT reported an 8% decline in fiscal third-quarter net sales to $882 million, primarily reflecting its exit from the pet distribution business at the beginning of the quarter. Excluding that business, organic net sales rose 2% to $862 million, supported by growth in both the pet and garden segments.

The company also raised its fiscal 2026 outlook for non-GAAP diluted earnings per share to $2.85 or better, from prior guidance of $2.70 or better. The outlook excludes the effects of future acquisitions, including its pending purchase of an 80% interest in European pet supplies company TRIXIE, as well as potential divestitures, restructuring actions and further tariff refunds.

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Margins Expanded Despite Lower Reported Sales MarketBeat ‘Stock of the Week’: Central Garden & Pet Non-GAAP gross profit declined 4% to $318 million, while gross margin increased 140 basis points to 36%. Non-GAAP operating income decreased 2% to $136 million, but operating margin rose 90 basis points to 15.4%.

Chief Financial Officer Brad Smith said higher corporate spending related to the TRIXIE transaction and investments in data capabilities accounted for more than 100% of the decline in operating income. Non-GAAP net income fell 2% to $96 million, and non-GAAP diluted EPS was $1.54, compared with $1.56 in the prior-year quarter.

Growth Ahead for Central Garden & PetAdjusted EBITDA was $162 million, compared with $167 million a year earlier, while adjusted EBITDA margin increased to 18.3% from 17.3%.

Chief Executive Officer Niko Lahanas said the company delivered organic sales growth and margin expansion while continuing to invest in brands, innovation, eCommerce capabilities and supply-chain operations. He said consumers continue to seek value and performance, with eCommerce and private label serving as important growth areas in certain categories.

Pet Sales Affected by Distribution Exit; Organic Business Grew Pet segment sales declined 19% to $400 million as a result of the distribution business exit. Organic pet sales, excluding the distribution operation, increased 2% to $380 million. The company cited broad gains across most of its pet portfolio, partly offset by lower Dog and Cat revenue tied primarily to the timing of promotional events and related investment spending.

Lahanas said the pet business is showing stabilization, with strength in professional, equine, avian and small-animal categories. The company said it gained share in professional products, Dog Treats, Rawhide and Flea and Tick.

Management also said a fire at a supplier plant in South America created supply issues for parts of the Dog and Cat business. Lahanas said the company had to source alternative supply and airship products, affecting both sales and margins. Smith said roughly two-thirds of the Dog and Cat sales decline was related to normal promotional timing differences, adding that July results were encouraging.

Pet eCommerce sales rose 10% year over year, aided by a record Prime Day, according to Smith. Pet segment non-GAAP operating income declined 2% to $76 million, while operating margin improved 320 basis points to 19%. The lower operating income and higher margin largely reflected the exit of the lower-margin distribution business, improved product mix and productivity benefits, partially offset by higher material and freight costs.

Garden Business Posts Growth Amid Uneven Weather Garden segment sales increased 3% to $482 million, driven by distribution wins and consumer demand in fertilizer, Wild Bird and grass seed. The company said sales in fertilizer and Wild Bird remained at record levels.

Jason Barnes, executive vice president of Garden Consumer Products, described weather during the quarter as mixed, with cold and wet conditions followed by a heat dome and extended heat. Despite those conditions, he said the company’s brands and manufactured products rose mid- to high-single digits during the quarter, while its vendor-partner distribution business weighed on overall results.

Garden eCommerce sales increased more than 40% from a year earlier, with growth across pure-play and omnichannel retail partners. The company said it gained market share in fertilizer, Wild Bird and grass seed.

Garden non-GAAP operating income increased 7% to $91 million, and operating margin improved 70 basis points to 18.9%. Favorable mix and productivity gains more than offset higher freight and digital marketing costs. Adjusted EBITDA increased to $101 million from $96 million, while margin rose to 20.9% from 20.4%.

Management said retailer inventories were in a favorable position entering the fourth quarter. Barnes said inventories were not a principal driver of third-quarter results, as shipments and consumption were relatively close, while stronger-than-expected retail sell-through in grass seed, fertilizer and Wild Bird drove performance.

TRIXIE Deal Would Expand European Pet Presence Central recently entered into a definitive agreement to acquire an 80% interest in TRIXIE, a European pet supplies and pet snacks company. The transaction is expected to close in the first half of fiscal 2027.

The deal calls for €340 million at closing and up to €60 million in additional earn-out consideration, for a potential total of €400 million. Smith characterized the purchase price as a high-single-digit EBITA multiple.

TRIXIE serves more than 30,000 pet retail stores worldwide and has a portfolio that is about 90% branded products, Lahanas said. Central expects the combined companies to generate approximately 10% of sales outside the United States and to create a broader platform in the European pet specialty market.

Management identified potential opportunities in innovation, sourcing, manufacturing, online penetration and logistics. Smith said the company does not expect meaningful synergies during the first year after closing, with benefits more likely to emerge in the second year as the companies develop a joint plan.

Lahanas said the acquisition would not prevent Central from pursuing additional deals. The company sees Europe as an area of focus for pet-related acquisitions, while Smith noted that valuation multiples in Europe can be lower than those in the U.S.

Cash Position and Logistics Program Cash provided by operations reached a company record of $327 million, up from $265 million a year earlier. Smith said the gain reflected strong cash conversion as well as inventory reductions associated with the distribution exit and grass seed inventory management.

Central ended the quarter with $997 million in cash and cash equivalents, up $284 million from a year earlier. Total debt was $1.2 billion, with no borrowings under its credit facility. Gross leverage was 2.8 times, and net leverage was 0.5 times, though those figures exclude funding for the pending TRIXIE transaction.

The company also said Project Horizon, its multiyear garden logistics modernization effort, is about 95% complete. Since 2022, Central has closed 13 facilities and opened two, consolidating separate garden distribution networks into a four-node national Central Logistics Network. Lahanas said all projects have been completed under budget with minimal customer disruption.

About Central Garden & Pet (NASDAQ:CENT)Central Garden & Pet NASDAQ: CENT is a leading North American specialty retailer, manufacturer and distributor serving the lawn and garden and pet supplies markets. The company operates through two primary segments: Pet and Garden. In the Pet segment, Central Garden & Pet offers a comprehensive range of products including pet food, treats, accessories, training products and habitat solutions for dogs, cats, birds, fish and small animals. The Garden segment encompasses a wide array of lawn, garden and outdoor living products, such as soils, fertilizers, planters, pest control solutions, landscape lighting and watering equipment.

Central Garden & Pet's product portfolio includes both proprietary and branded offerings.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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WALNUT CREEK, Calif.--(BUSINESS WIRE)---- $CENT #Boston--Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA), a leading consumer goods company in the pet and garden industries, today announced that it will participate in the following upcoming investor conferences: CG 46th Annual Growth Conference (August 11) Boston, Mass. – Niko Lahanas, Chief Executive Officer, will participate in a fireside chat at 10:30 a.m. ET. Senior management will also host one-on-one meetings with institutional investors. Ba.

Central Garden and Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) (“Central”), a leading consumer goods company in the pet and garden industries, will release its

Central Garden & Pet Company (CENT) M&A Call Transcript

WALNUT CREEK, Calif. & TARP, Germany--(BUSINESS WIRE)---- $CENT #Acquisition--Central Garden & Pet Company (NASDAQ: CENT), (NASDAQ: CENTA) (“Central”), a leading consumer goods company in the pet and garden industries, today announced that it has entered into a definitive agreement to acquire a majority interest in TRIXIE Heimtierbedarf GmbH & Co. KG (“TRIXIE”), the leading European pet supplies and pet snacks company from founder, Bonnik Hansen, and current shareholders Dirk Jessen and Volker Haak. The acqui.

Key Takeaways Central Garden's cost and simplicity program is strengthening efficiency and business resilience.CENT expanded gross and operating margins through sales leverage, cost management and simplification.CENT is optimizing manufacturing and distribution to improve flexibility and support profitable growth. Central Garden & Pet Company (CENT - Free Report) noted that its Cost and Simplicity program has fundamentally strengthened the business. The company believes that these efforts have improved operational efficiency, enhanced organizational resilience and created a better-run business. Management also emphasized that this focus on cost discipline and simplification is now embedded in the company’s operating model and continues to shape the way it manages and executes its business.

The company expanded second-quarter fiscal 2026 gross margin by 30 basis points to 33.1%, while operating margin improved to 12.6% from 11.2% in the prior-year period. Higher sales leverage, prudent cost management and ongoing organizational simplification supported margin expansion while allowing continued investment in key growth initiatives. Management highlighted multiple initiatives to simplify the business while enhancing execution and operational efficiency. As part of these efforts, the company relocated its DoMyOwn business to its Covington fulfillment center to improve delivery speed, reduce costs and increase network flexibility.

Additionally, in the last earnings call transcript the company noted that it is consolidating Top Dog Best Bully Sticks manufacturing into its dog and cat platform in New Jersey to leverage scale and manufacturing capabilities better. The company also entered into a joint venture with Phillips Pet Food & Supplies while retaining a 20% ownership stake. Management believes that the partnership will strengthen and enhance the agility of its nationwide distribution network, simplify operations and allow the company to focus more directly on expanding its Central branded portfolio.

The company believes that the streamlined structure supports better execution, stronger productivity and improved cost control while creating room to continue investing behind brands and innovation. Management also reaffirmed fiscal 2026 earnings guidance, noting that ongoing margin discipline and portfolio optimization remain central to its operating strategy despite inflation, tariffs and a promotional retail environment. Management expects adjusted earnings to be $2.70 per share or better.

The Zacks Rundown for CENTShares of this Zacks Rank #3 (Hold) company have soared 29.6% in the past six months compared with the industry’s growth of 12.4%.

Image Source: Zacks Investment Research

From a valuation standpoint, CENT trades at a forward price-to-earnings ratio of 14.04, lower than the industry’s average of 14.76.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CENT’s current and next fiscal year earnings implies year-over-year growth of 5.9% and 7.3%, respectively.

Image Source: Zacks Investment Research

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ARKO Corp. (ARKO - Free Report) operates a chain of convenience stores in the United States. ARKO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ARKO's current fiscal-year sales implies a decline of 2.8%, while the same for current fiscal-year earnings implies growth of 93.3% from the year-ago reported figures. ARKO delivered a trailing four-quarter earnings surprise of 43.2%, on average.

Colruyt Group N.V. (CUYTY - Free Report) together with its subsidiaries, engages in the retail, wholesale, food service, and other activities in Belgium, France, and internationally. It presently flaunts a Zacks Rank #1.

The Zacks Consensus Estimate for CUYTY's current financial-year sales and earnings indicates 7.4% and 2.5% growth, respectively, from the last year.

Phibro Animal Health Corporation (PAHC - Free Report) operates as an animal health and mineral nutrition company in the United States, Latin America and Canada, Europe, the Middle East, Africa, and the Asia Pacific. PAHC currently carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for PAHC's current fiscal-year sales and earnings implies growth of 14.8% and 47.4%, respectively, from the year-ago actuals. PAHC delivered a trailing four-quarter earnings surprise of 16.3%, on average.

WALNUT CREEK, Calif.--(BUSINESS WIRE)---- $CENT #CentralToHome--Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) (“Central”), a leading consumer goods company in the pet and garden industries, will release its fiscal 2026 second quarter results for the period ending March 28, 2026, after market close on Wednesday, May 6, 2026. On the same day, Central will host a conference call at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time), led by CEO Niko Lahanas and CFO Brad Smith, to review these results and to.

CENT's margin focus, shipment timing and consumables strength are likely to support Q2 results despite macro pressures.

WALNUT CREEK, Calif.--(BUSINESS WIRE)---- $CENT #CentralToHome--Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) (“Central”), a leading consumer goods company in the pet and garden industries, today announced financial results for its fiscal 2026 second quarter ended March 28, 2026. “We continued to build on our solid start to the year, ending the quarter with higher sales, expanded operating margins, and increased earnings per share versus last year, driven by consistent execution and improving performa.

Central Garden & Pet Company (CENT) Q2 2026 Earnings Call Transcript

Central Garden & Pet posts a Q2 earnings beat as Pet and Garden sales rise, margins improve and both segments deliver strong operating growth.

Here is how Central Garden (CENT) and Carter's (CRI) have performed compared to their sector so far this year.

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WALNUT CREEK, Calif.--(BUSINESS WIRE)---- $CENT #CentralImpact--Central Garden & Pet Company (NASDAQ: CENT), (NASDAQ: CENTA), a leading consumer goods company in the pet and garden industries, is deepening its commitment to local wildlife care and conservation through its support of Lindsay Wildlife Experience in Walnut Creek. By combining employee volunteer efforts with in-kind donations and a $50,000 contribution toward Lindsay's new aviary expansion project, Central is helping strengthen the organization's capac.

On June 04, 2026, Central Garden & Pet Co CENT shares rose 4.9% to a current price of $39.57. This movement comes amid a 52-week range of $28.77 to $41.53, reflecting a strong year-to-date performance with a gain of 23.1%.

GF Value™ verdict: Current price is $39.57, compared to GF Value™ of $37.84, indicating the stock is 4.6% overvalued.GF Score™ of 78/100 suggests an above-average potential for long-term returns.Most notable signal: No insider transactions have been reported in the last 3 months. Is CENT Overvalued or Undervalued? Currently, Central Garden & Pet Co CENT is trading at $39.57, which is above its GF Value™ estimate of $37.84. This pricing indicates that the stock is approximately 4.6% overvalued based on GuruFocus’ proprietary measure of intrinsic value, which is calculated from historical trading multiples, past business growth, and future performance estimates. The GF Valuation label suggests that CENT is fairly valued, but given the current overvaluation, investors may face some risks if the stock were to correct in the near term.

The margin of safety is limited at this price level, suggesting that potential investors might want to be cautious. While CENT has shown solid price performance and a reasonable GF Score™, the overvaluation implies that the stock could face downward pressure in the future if market conditions or company performance do not meet expectations.

How Does CENT's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 14.4x 17.6x Forward P/E 12.8x N/A The current P/E ratio of 14.4x is significantly below its 5-year median P/E of 17.6x, suggesting that the stock is trading at a discount to its historical valuation. This P/E analysis agrees with the GF Value™ verdict, indicating that while CENT is currently overvalued, it remains relatively less expensive compared to its historical averages.

What Does CENT's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).

Metric Rating GF Score™ 78 Financial Strength 6/10 Profitability 8/10 Growth 3/10 Valuation 9/10 Momentum 8/10 The GF Score™ of 78/100 indicates that CENT has strong profitability and valuation rankings, suggesting good financial health and attractive valuation metrics relative to its peers. However, the lower growth rank of 3/10 highlights that the company may face challenges in expanding its earnings at a rapid pace. Overall, CENT presents a mixed picture with solid profitability and valuation, but growth could be a potential concern for long-term investors.

What Are Insiders Doing with CENT Stock? There have been no insider transactions in Central Garden & Pet Co CENT stock over the last three months. This lack of recent insider activity may suggest that executives and board members currently do not see a compelling need to buy or sell shares, which could indicate stability or a wait-and-see approach regarding the company's future performance.

What This Means for Investors Based on the assessment of GF Value™, Central Garden & Pet Co CENT is currently overvalued at $39.57 compared to its GF Value™ of $37.84, suggesting a potential risk for investors. While the company exhibits a strong GF Score™ and a solid profitability profile, the overvaluation indicates caution may be warranted when considering new investments in the stock.

For the complete analysis, visit the Central Garden & Pet Co CENT stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is CENT's GF Score™?

CENT's GF Score™ is 78/100, indicating above-average potential for long-term returns based on various fundamental factors.

Is CENT overvalued or undervalued?

According to the GF Value™, CENT is currently overvalued with a price of $39.57 against a GF Value™ of $37.84, suggesting caution for potential investors.

What is CENT's P/E ratio?

CENT's P/E (TTM) is 14.4x, which is 18% below its 5-year median P/E of 17.6x, indicating that the stock is trading at a discount relative to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

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