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AptarGroup Hits a 52-Week High: What's Driving the Stock?

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AptarGroup, Inc. (ATR - Free Report) shares hit a fresh 52-week high of $80.47 on Jul 11, before closing a notch lower at $80.20. This represents a strong one-year return of about 24.8%, much better than the S&P 500’s 1.8%. The company recorded year-to-date return of around 10.4%.

The stock price appreciation reflects expected benefit from AptarGroup’s product diversification, expansive geographic reach and product introductions.

AptarGroup has a market cap of roughly $5.07 billion. Average volume of shares traded over the last three months is roughly 270K. It has beaten the Zacks Consensus Estimate in three out of the trailing four quarters, with an average surprise of 7.43%.

APTARGROUP INC Price and Consensus

APTARGROUP INC Price and Consensus | APTARGROUP INC Quote

Driving Factors

During first-quarter 2016, AptarGroup completed the Mega Airless acquisition. This will add complementary products and market coverage to its existing diversified portfolio of business. The integration is progressing as planned. Going forward, AptarGroup expects the Mega Airless buyout to contribute approximately 2 cents to its earnings per share each quarter.

Notably, AptarGroup expects consistent core sales growth from its Pharma and Food + Beverage segments. The Beauty + Home segment is also expected to grow in core sales over the prior-year quarter, excluding any positive influence from the Mega Airless acquisition.

The company continues to expand its product portfolio within new application fields. AptarGroup participated in several product introductions, including a global perfume launched by Christian Dior, featuring its new long-lasting fine spray actuator. The pumps are also present in several new hair-care products from L'Oreal in Europe, ranging from conditioners to hair mousse.

AptarGroup remains successful with its closures featuring the SimpliSqueeze valve for inverted packaging. Heinz Kraft launched several condiments, including ranch dressing, mustard flavors and barbecue sauces, featuring the snap-top closures with SimpliSqueeze valve for inverted packaging.

In the food market also, the closure has been incorporated in an infant formula launched in China. Overall, AptarGroup is well positioned to grow over the long term in different markets, as it continues to leverage from both its technologies and processes across its business segments.

AptarGroup currently has a Zacks Rank #4 (Sell).

Stocks to Consider

Better-ranked stocks in the sector include Alamo Group, Inc. (ALG - Free Report) , Astec Industries, Inc. (ASTE - Free Report) and The Manitowoc Company, Inc. (MTW - Free Report) . All these stocks carry a Zacks Rank #2 (Buy).

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