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Unstoppable trend driving this stock: Cramer

With so much frenzied competition in the supermarket space, earnings from this company are not to be ignored.

So said Jim Cramer, after sifting through the latest results from Hain Celestial, a seller of natural and organic foods including Arrowhead Mills cereals, Mountian Sun juices, Garden of Eatin' snacks.

"Management had recently been pretty conservative about what the numbers might look like, so a lot of investors were braced for a potential disappointment, but this turned out to be classic UPOD, under promise and over deliver. Hain delivered a one-cent earnings beat off of an 89-cent basis," Cramer explained.




Agnieszka Kirinicjanow | E+ | Getty Images

However, the metric that really captured Cramer's attention was the whopping 26 percent year over year increase in sales growth.

With other natural food sellers such as Whole Foods facing skepticism, Cramer believes this sales increase from Hain confirms his belief that Whole Foods weakness does not reflect an industry decline.

Rather he thinks the slide in Whole Foods, which you can see in the chart below, is a sign the natural food trend is so strong, rival grocery stores want a piece of the pie.

"If anybody was doubting the power of the organic and natural food theme," Cramer said, this Hain number should quell those fears.

Going forward, Cramer believes the growth opportunities for Hain, which supplies to conventional as well as natural markets, are substantial.

"We think we're pretty well-positioned to continue to drive strong growth in the mid-to-high single digits fueled by the fast-growing snack category, tea and personal care, for instance, said John Carroll, CEO of Hain's Celestial U.S. business on the company's fourth-quarter earnings call.

Meanwhile, CEO Irwin Simon said on "Mad Money" that Hain could grow through acquisition, too.

All told, Cramer believes the natural and healthy eating area remains a hotbed of opportunity. And although Whole Foods may be challenged, he thinks conventional markets are so eager to leverage the trend, suppliers such as Hain remain highly investable.

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"I know Hain has been trading sideways since February, but I think this latest quarter, and resulting 9 percent pop, is a sign that Hain is about to return to its longer-term record of fabulous outperformance."

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