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Owens-Illinois Hits 52-Week High: What's Driving the Stock?

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Shares of Owens-Illinois, Inc. (OI - Free Report) crafted a 52-week high of $23.11 on Jun 1, before closing the day at $22.92. Shares of this manufacturer of glass container products rallied on the back of a strong Q1 and upbeat guidance.

The company has a market cap of $3.7 billion. Owens-Illinois’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive surprise of 5.92%. The average volume of shares traded over the last three months was roughly 1.27M.

Owens-Illinois, Inc. Price and Consensus

 

Owens-Illinois, Inc. Price and Consensus | Owens-Illinois, Inc. Quote

The stock delivered a solid one-year return of around 18.3%. Over the last one year, Owens-Illinois outperformed the Zacks classified Glass Products sub-industry with respect to price performance. The stock gained around 31.5%, while the industry recorded growth of 20.8% over the same time frame.



Growth Drivers

Notably, Owens-Illinois’ first-quarter 2017 adjusted earnings per share of 58 cents surpassed the Zacks Consensus Estimate of 53 cents. Additionally, earnings jumped 21% year over year and exceeded management guidance range of 50–55 cents per share.

Further, the company reaffirmed adjusted earnings per share outlook for 2017 in the band of $2.40–$2.50 per share. Compared with adjusted earnings per share of $2.31 in 2016, the mid-point of the guidance range reflects 6% year-over-year growth

For 2017, Owens-Illinois remains on track to achieve all of its financial targets, including volume growth, margin, adjusted earnings, cash flow and deleveraging. The company’s focus on simplifying the organization and boosting productivity will drive long-term growth.

Moreover, Owens-Illinois remains focused on improving customer experience and giving priority to mutually beneficial, long-term partnerships. It continues to benefit from the key account management program rolled out in 2016.

Owens-Illinois currently carries a Zacks Rank #2 (Buy).

Other Key Picks

Other top-ranked stocks in the same sector are AGCO Corporation (AGCO - Free Report) , Parker-Hannifin Corp. (PH - Free Report) and Deere & Company (DE - Free Report) All the three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AGCO has an average positive earnings surprise of 40.39% for the trailing four quarters. Parker-Hannifin generated an average positive earnings surprise of 40.25% over the past four quarters. Deere has an average positive earnings surprise of 14.94% over the past four quarters.

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