Where Honest Co Stands With Analysts

Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on Honest Co HNST in the last three months.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Honest Co, revealing an average target of $7.0, a high estimate of $7.00, and a low estimate of $7.00. Staying constant with the previous average price target, the current average remains unchanged.

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of Honest Co by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Honest Co. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Honest Co compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Honest Co's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Honest Co's market position. Stay informed and make data-driven 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.

Breaking Down Honest Co's Financial Performance

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Positive Revenue Trend: Examining Honest Co's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.61% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Staples sector.

Net Margin: Honest Co's net margin excels beyond industry benchmarks, reaching -0.81%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Honest Co's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of -0.53%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Honest Co's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.35%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Honest Co's debt-to-equity ratio is below the industry average at 0.12, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Core of Analyst Ratings: What Every Investor Should Know

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.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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