What Happened?

Shares of natural food company Hain Celestial (NASDAQ:HAIN) fell 6.8% in the afternoon session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%. 

Markets reacted negatively to the announcement, reflecting deep concerns among investors about the broader economic implications. The tariffs were likely seen as a significant threat to global trade flows, with the potential to slow economic growth, drive up consumer prices, and spark retaliatory measures. Wedbush analyst Dan Ives captured the prevailing market anxiety, stating, "We would characterize this slate of tariffs as 'worse than the worst case scenario' the Street was fearing." His comment highlighted how the scope and severity of the tariffs far exceeded Wall Street's expectations, adding a new layer of uncertainty for businesses and investors.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Hain Celestial? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Hain Celestial’s shares are extremely volatile and have had 40 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 7 months ago when the stock gained 31.3% on the news that the company reported strong second-quarter 2024 results. Hain Celestial blew past analysts' EPS expectations, and its organic revenue growth also outperformed Wall Street's estimates. 

Looking ahead, guidance was promising, with FY'25 organic sales expected to be flat (vs. -2% decline recorded in FY'24). Similarly, adjusted EBITDA was expected to grow by mid-single digits, year on year, while free cash flow was expected to be at least $60m. Zooming out, this was a fantastic quarter, which was reflected in the significant stock move.

Hain Celestial is down 37% since the beginning of the year, and at $3.78 per share, it is trading 58.4% below its 52-week high of $9.09 from October 2024. Investors who bought $1,000 worth of Hain Celestial’s shares 5 years ago would now be looking at an investment worth $139.02.

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