CENT Central Garden & Pet Company

Central Garden & Pet Company (NASDAQ:CENTA) has received a "Moderate Buy" consensus recommendation from eight brokerages, with an average 12-month price target of $41.50. Hedge funds and institutions own over 50% of the stock, with several major firms recently increasing their holdings. The company recently beat quarterly earnings estimates and provided optimistic FY2026 guidance.

Central Garden (CENT) shares have dropped 5.6% since its last earnings report, underperforming the S&P 500 despite beating Q4 fiscal 2025 estimates for both top and bottom lines. The company delivered a narrower-than-expected loss and record fiscal year performance, driven by strong Garden segment growth and margin expansion. However, revised estimates indicate a downward shift for the stock, which currently holds a Zacks Rank #3 (Hold).

Central Garden & Pet (CENT) has seen its share price slide recently, down 16.0% year-to-date and 20.0% over the last 12 months, despite delivering positive returns over 3 and 5 years. Simply Wall St's analysis suggests the company is significantly undervalued, with a Discounted Cash Flow (DCF) model indicating it could be 69.8% undervalued and its Price-to-Earnings (PE) ratio also sitting below its industry and fair ratio averages. This undervaluation is attributed to market sentiment, with the underlying business of pet and garden products showing resilience and management focusing on brand strength and operational efficiency.

Fitch Ratings has affirmed Central Garden & Pet Company's (CENT) ratings, including a Long-Term Issuer Default Rating (IDR) at 'BB' with a Stable Outlook, citing strong positions in pet and garden consumables and recent margin improvements. The company's moderate EBITDA leverage below 4x and ample liquidity provide flexibility despite challenges like tariffs and moderating consumer health. Fitch anticipates near-term sales decline but expects low-single-digit growth beyond 2026, supported by a shift to branded consumables and ongoing optimization initiatives.

Central Garden & Pet Company (CENT) is currently exhibiting weak sentiment, signaling a potential resumption of long-term weakness after a neutral shift. The AI models suggest an exceptional 29.7:1 risk-reward short setup, targeting a 9.0% downside with minimal risk. Multiple trading strategies, including Position, Momentum Breakout, and Risk Hedging, are outlined, along with multi-timeframe signal analyses indicating weak or neutral sentiment across different horizons.

Central Garden & Pet (CENT) recently acquired the U.S. assets of Champion USA, a provider of feed-through cattle fly-control solutions, expanding its presence in the livestock segment. This acquisition integrates Champion's JustiFLY product line into CENT's Professional business unit, aiming to enhance growth through sustainable herd management solutions. The transaction, closed on December 12, 2025, is expected to boost Central Garden & Pet's competitive standing in animal health.