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Reasons Why You Should Add AptarGroup (ATR) to Your Portfolio
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AptarGroup, Inc. (ATR - Free Report) has been gaining from its focus on business transformation plans and improved organizational effectiveness. Innovative product launches are also fueling the company’s growth.
Let's see what makes this stock a compelling investment option at the moment.
Solid 2Q23 Results: AptarGroup reported second-quarter 2023 adjusted earnings per share of $1.23, beating the Zacks Consensus Estimate of $1.13. The bottom line increased 26% year over year from 98 cents (including comparable exchange rates).
Total revenues increased 6% year over year to $896 million in the reported quarter. The figure was in line with the Zacks Consensus Estimate.
Positive Earnings Surprise History: APOG has an average trailing four-quarter earnings surprise of 8.6%.
Optimistic Growth Projections: The Zacks Consensus Estimate for the company’s third-quarter 2023 earnings has moved 20% upward over the past 60 days and is pegged at $1.27 per share. The estimate for 2023 has moved up 9% in the same period and is pegged at $4.55 per share.
The favorable estimate revisions instill investor confidence in the stock.
Company Outperforming Industry: Shares of the company have gained 22.1% in the past year against the industry’s fall of 3.3%.
Image Source: Zacks Investment Research
Focus on Business Transformation: AptarGroup has been focused on business transformation plans to drive top-line growth, boost operational excellence, enhance its approach to innovation and improve organizational effectiveness. The company has primarily been focused on transforming its Beauty segment, adding capabilities in Asia, implementing new commercial strategies, reducing costs and capitalizing on the fast-growing application fields.
The company’s cost-control measures and pricing actions will help sustain margins in the upcoming quarters.
Effective Jan 1, 2023, the company realigned its segments to better serve customers. The company has combined all its closures operations into a single segment, Aptar Closures. The realignment is expected to strengthen AptarGroup's market position in closures and beauty by more closely aligning it with how its customers are structured.
Furthermore, it improves the bottom line by capturing efficiencies and streamlining operations.
Healthy Demand & Growth: The Pharma segment is witnessing healthy demand for its proprietary dispensing devices used for nasal decongestants, eye care, cough and cold, and saline rinses, as well as allergic rhinitis, emergency medicines and depression therapies.
Demand for elastomeric components is also strong, including that for biologics. Given the ongoing sales momentum in elastomer components and active material solutions, AptarGroup is expanding its capacity to produce elastomer components for injected medicines and active material science solutions, which will drive near-term growth.
The Beauty segment is also seeing higher sales in prestige and mass fragrances, along with sales growth of skin care and color cosmetic solutions. A positive mix of pricing and volume growth will further aid the segment’s revenues in the upcoming quarter.
Innovative Product Launches: AptarGroup is poised to gain from innovative product launches and continues to be the preferred choice for renowned brands worldwide. In the Pharma segment, AptarGroup's patented spray pump with an electronic counter and lockout device is being used in a new pain management medication in Europe.
The company's proprietary dispensing technology is used in Bayer's anti-inflammatory and pain-relieving throat spray, and its proprietary metering valve technology is featured on an asthma and COPD inhaler in China. In France, the company’s active material moisture protection solution, Activ-Vial, will be featured on a probiotic.
Zacks Rank and Other Key Picks
AptarGroup currently carries a Zacks Rank #2 (Buy).
Caterpillar has an average trailing four-quarter earnings surprise of 18.5%. The Zacks Consensus Estimate for CAT’s 2023 earnings is pegged at $19.81 per share. The consensus estimate for 2023 earnings has moved north by 11.4% in the past 60 days. Its shares have gained 51.6% in the last year.
Astec has an average trailing four-quarter earnings surprise of 20%. The Zacks Consensus Estimate for ASTE’s 2023 earnings is pegged at $2.81 per share. The consensus estimate for 2023 earnings has moved 4% north in the past 60 days. ASTE’s shares have gained 22.8% in the last year.
The Zacks Consensus Estimate for Eaton’s 2023 earnings per share is pegged at $8.80. The consensus estimate for 2023 earnings has moved 4% north in the past 60 days. It has a trailing four-quarter average earnings surprise of 3%. Shares of ETN have rallied 68.8% in the last year.
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Reasons Why You Should Add AptarGroup (ATR) to Your Portfolio
AptarGroup, Inc. (ATR - Free Report) has been gaining from its focus on business transformation plans and improved organizational effectiveness. Innovative product launches are also fueling the company’s growth.
Let's see what makes this stock a compelling investment option at the moment.
Solid 2Q23 Results: AptarGroup reported second-quarter 2023 adjusted earnings per share of $1.23, beating the Zacks Consensus Estimate of $1.13. The bottom line increased 26% year over year from 98 cents (including comparable exchange rates).
Total revenues increased 6% year over year to $896 million in the reported quarter. The figure was in line with the Zacks Consensus Estimate.
Positive Earnings Surprise History: APOG has an average trailing four-quarter earnings surprise of 8.6%.
Optimistic Growth Projections: The Zacks Consensus Estimate for the company’s third-quarter 2023 earnings has moved 20% upward over the past 60 days and is pegged at $1.27 per share. The estimate for 2023 has moved up 9% in the same period and is pegged at $4.55 per share.
The favorable estimate revisions instill investor confidence in the stock.
Company Outperforming Industry: Shares of the company have gained 22.1% in the past year against the industry’s fall of 3.3%.
Image Source: Zacks Investment Research
Focus on Business Transformation: AptarGroup has been focused on business transformation plans to drive top-line growth, boost operational excellence, enhance its approach to innovation and improve organizational effectiveness. The company has primarily been focused on transforming its Beauty segment, adding capabilities in Asia, implementing new commercial strategies, reducing costs and capitalizing on the fast-growing application fields.
The company’s cost-control measures and pricing actions will help sustain margins in the upcoming quarters.
Effective Jan 1, 2023, the company realigned its segments to better serve customers. The company has combined all its closures operations into a single segment, Aptar Closures. The realignment is expected to strengthen AptarGroup's market position in closures and beauty by more closely aligning it with how its customers are structured.
Furthermore, it improves the bottom line by capturing efficiencies and streamlining operations.
Healthy Demand & Growth: The Pharma segment is witnessing healthy demand for its proprietary dispensing devices used for nasal decongestants, eye care, cough and cold, and saline rinses, as well as allergic rhinitis, emergency medicines and depression therapies.
Demand for elastomeric components is also strong, including that for biologics. Given the ongoing sales momentum in elastomer components and active material solutions, AptarGroup is expanding its capacity to produce elastomer components for injected medicines and active material science solutions, which will drive near-term growth.
The Beauty segment is also seeing higher sales in prestige and mass fragrances, along with sales growth of skin care and color cosmetic solutions. A positive mix of pricing and volume growth will further aid the segment’s revenues in the upcoming quarter.
Innovative Product Launches: AptarGroup is poised to gain from innovative product launches and continues to be the preferred choice for renowned brands worldwide. In the Pharma segment, AptarGroup's patented spray pump with an electronic counter and lockout device is being used in a new pain management medication in Europe.
The company's proprietary dispensing technology is used in Bayer's anti-inflammatory and pain-relieving throat spray, and its proprietary metering valve technology is featured on an asthma and COPD inhaler in China. In France, the company’s active material moisture protection solution, Activ-Vial, will be featured on a probiotic.
Zacks Rank and Other Key Picks
AptarGroup currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Industrial Products sector are Caterpillar Inc. (CAT - Free Report) , Astec Industries, Inc. (ASTE - Free Report) and Eaton Corporation plc. (ETN - Free Report) . CAT and ASTE sport a Zacks Rank #1 (Strong Buy), and ETN has a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Caterpillar has an average trailing four-quarter earnings surprise of 18.5%. The Zacks Consensus Estimate for CAT’s 2023 earnings is pegged at $19.81 per share. The consensus estimate for 2023 earnings has moved north by 11.4% in the past 60 days. Its shares have gained 51.6% in the last year.
Astec has an average trailing four-quarter earnings surprise of 20%. The Zacks Consensus Estimate for ASTE’s 2023 earnings is pegged at $2.81 per share. The consensus estimate for 2023 earnings has moved 4% north in the past 60 days. ASTE’s shares have gained 22.8% in the last year.
The Zacks Consensus Estimate for Eaton’s 2023 earnings per share is pegged at $8.80. The consensus estimate for 2023 earnings has moved 4% north in the past 60 days. It has a trailing four-quarter average earnings surprise of 3%. Shares of ETN have rallied 68.8% in the last year.