Increasing appetite for organic products is bringing natural and organic food companies in the limelight, and The Hain Celestial Group, Inc. ( HAIN ) is not any exception. The stock, on Oct 4, attained Zacks Rank #1 (Strong Buy).

Why the Upgrade?

A leader in natural food and personal care product categories with an extensive portfolio of well-known brands and strong fundamentals, Hain Celestial is poised to surge as the economy gradually revives and demand for organic food increases.

Hain Celestial constantly endeavors to expand its footprint in organic and natural products and in turn, "Change the Way the World Eats." The company's latest attempt is the acquisition of Tilda Limited, a renowned name in Basmati rice and Rudi's Organic Bakery, one of the leading organic and gluten-free companies. Recently, it fully acquired Hain Pure Protein Corporation.

Hain Celestial's strategic investments coupled with continued efforts to contain costs, increase productivity, and enhance cash flows and margins enabled it to deliver healthy results. The company, which competes with General Mills Inc. ( GIS ), expects to sustain strong momentum through acquisitions, which have helped it in building market share.

If we look at the company's earnings surprise history over the last 12 quarters, Hain Celestial has topped the Zacks Consensus Estimate by an average of 3.2%, including an earnings surprise of 1.1% in fourth-quarter fiscal 2014. In the last concluded quarter, the company posted earnings of 90 cents a share that came a penny ahead of the Zacks Consensus Estimate and surged 39% year over year. Management cited that strong top-line growth (up 26%), integration of acquired businesses and focus on high margin carrying brands led to bottom-line growth.

For fiscal 2015, management now anticipates sales of $2,725 million to $2,800 million, up 27% to 30% from fiscal 2014. Earnings per share are expected between $3.72 and $3.90, representing a year-over-year increase of 17% to 23%.

Strong results and the upbeat guidance led to a rise in the Zacks Consensus Estimate, which increased 3% to $3.83 for fiscal 2015 and 4.8% to $4.37 for fiscal 2016 in the past 60 days.

Other Favorably Ranked Stocks

Other stocks that look promising include ConAgra Foods, Inc. ( CAG ) and Kraft Foods Group, Inc. ( KRFT ) holding a Zacks Rank #2 (Buy).

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Hain Celestial Riding on Organic Wave: Add HAIN to Portfolio - Analyst Blog

Video Link: https://www.youtube.com/watch?v=zVgfJZ07Dh8

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Source: UC Davis; Certified Organic Farm

Every time you step foot in a supermarket, you're bombarded with organic options. But there's a lot about organic food that most folks never hear. Here are seven fascinating facts about organic food.

1. It's a global game

The United States Department of Agriculture (USDA) has certified around 25,000 farms and businesses worldwide. USDA certification isn't just important for American corporations - it's important for any company that wants to market its product as organic to an American audience. To date, farms and companies in over 100 countries have received the USDA's stamp of organic approval.

2. Certification is expensive

Unless you sell less than $5,000 worth of produce per year, you're required to hire a third-party certifier to call your product organic. The classification has received significant pushback from some small-scale farmers, who tout the title as unaffordable. While exact costs vary by farm type and size, the USDA has recognized that certification doesn't come cheap. It'll reimburse up to $750 per certification, and the new 2014 Farm Bill doubles certification cost-share funding to $57.5 million.

3. Unexpected inputs

Farmers are an innovative bunch, and over the years they've adapted their inputs to use what the rest of us might consider useless. While sewage sludge is on the input lists for some farmers, the USDA has nixed that from organic farmers' armory of ingredients. But black-and-white newspaper, soap, and liquid fish products (it's exactly what it sounds like) all got the go-ahead from the USDA.

4. Organic vodka?

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