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3 Packaging Stocks That are Must-Adds to Your Portfolio
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Packaging demand has remained remarkably consistent in the past decade resulting in the industry outperforming the S&P 500. Customer convenience remains the top priority for the companies in the global packaging market and consequently they remain constantly focused on bringing in new packaging designs or redesigning existing packaging as per customer preferences.
The packaging companies are focused on expanding geographic reach and realigning product offerings to reduce operational costs. They are targeting on high growth segments to strengthen financial position in the market. At present, the market is witnessing intense restructuring and consolidation because of the overcapacity. The preference for value-added services and customized packaging solutions to provide convenience, safety, durability as well as freshness protection will continue to boost the industry.
The Zacks categorized Containers and Glass industry has outperformed the S&P 500 over the past one year. The industry has clocked a gain of 22.7%, ahead of the S&P 500’s increase of 19.7%. It consists of the Containers –Paper and Packaging sub industry and the Containers- Metal /Glass subindustry that gained a respective 23.3% and 22.2% over the same time frame.
The Containers and Glass industry along with its sub industries falls under the industrial products sector (one of the 16 broad Zacks sectors) that put up a 28.5% growth in earnings in first-quarter 2017 and an 11.7% growth in earnings is projected in second-quarter 2017. The Industrial Products sector is one of the three sectors projected to log a double-digit growth in the second quarter. (Read more: Q2 Earnings Season Preview)
It would be a prudent move to zero in on some stocks in the packaging space right now that exhibit all signs of healthy prospects. We have, thus, highlighted a few stocks that are good buys right now, backed by a strong Zacks Rank and upward estimate revisions.
AptarGroup, Inc. (ATR - Free Report) provides a range of packaging, dispensing, and sealing solutions, primarily for the beauty, personal care, home care, prescription drug, consumer health care, injectable, and food and beverage markets.
The stock carries a Zacks Rank #2 (Buy) and has a long-term expected earnings growth rate of 9.33%. The company has delivered positive earnings surprises in the last four quarters, with an average beat of 1.78%. The estimates for the company for fiscal 2017 and fiscal 2018 have moved north 5% and 5%, respectively in the last 60 days, reflecting the positive outlook of analysts. The projected growth rate for earnings in fiscal 2017 is 10.04% and for fiscal 2018 at 8.42%.
UFP Technologies, Inc. (UFPT - Free Report) designs and converts foams, plastics, composites, and natural fiber materials and provides solutions to medical, automotive, consumer, electronics, industrial, aerospace, and defense markets in the U.S. It carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UFP Technologies has a positive average earnings surprise of 7.91% in the last four quarters. The estimate for fiscal 2017 climbed 19% to $1.39 in the past 60 days. The Zacks Consensus Estimate for fiscal 2018 has also moved north 2% to $1.75. The projected growth rate for fiscal 2017 is 26.36% and for fiscal 2018 at 25.90%.
Mobile Mini, Inc. , a provider of portable storage and specialty containment solutions, also sports a Zacks Rank #2. The Zacks estimate for earnings for fiscal 2017 has moved up 1% to $1.26 in the past 60 days. The Zacks Consensus Estimate for fiscal 2018 has also moved north 1% to $1.44
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
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3 Packaging Stocks That are Must-Adds to Your Portfolio
Packaging demand has remained remarkably consistent in the past decade resulting in the industry outperforming the S&P 500. Customer convenience remains the top priority for the companies in the global packaging market and consequently they remain constantly focused on bringing in new packaging designs or redesigning existing packaging as per customer preferences.
The packaging companies are focused on expanding geographic reach and realigning product offerings to reduce operational costs. They are targeting on high growth segments to strengthen financial position in the market. At present, the market is witnessing intense restructuring and consolidation because of the overcapacity. The preference for value-added services and customized packaging solutions to provide convenience, safety, durability as well as freshness protection will continue to boost the industry.
The Zacks categorized Containers and Glass industry has outperformed the S&P 500 over the past one year. The industry has clocked a gain of 22.7%, ahead of the S&P 500’s increase of 19.7%. It consists of the Containers –Paper and Packaging sub industry and the Containers- Metal /Glass subindustry that gained a respective 23.3% and 22.2% over the same time frame.
The Containers and Glass industry along with its sub industries falls under the industrial products sector (one of the 16 broad Zacks sectors) that put up a 28.5% growth in earnings in first-quarter 2017 and an 11.7% growth in earnings is projected in second-quarter 2017. The Industrial Products sector is one of the three sectors projected to log a double-digit growth in the second quarter. (Read more: Q2 Earnings Season Preview)
It would be a prudent move to zero in on some stocks in the packaging space right now that exhibit all signs of healthy prospects. We have, thus, highlighted a few stocks that are good buys right now, backed by a strong Zacks Rank and upward estimate revisions.
AptarGroup, Inc. (ATR - Free Report) provides a range of packaging, dispensing, and sealing solutions, primarily for the beauty, personal care, home care, prescription drug, consumer health care, injectable, and food and beverage markets.
The stock carries a Zacks Rank #2 (Buy) and has a long-term expected earnings growth rate of 9.33%. The company has delivered positive earnings surprises in the last four quarters, with an average beat of 1.78%. The estimates for the company for fiscal 2017 and fiscal 2018 have moved north 5% and 5%, respectively in the last 60 days, reflecting the positive outlook of analysts. The projected growth rate for earnings in fiscal 2017 is 10.04% and for fiscal 2018 at 8.42%.
UFP Technologies, Inc. (UFPT - Free Report) designs and converts foams, plastics, composites, and natural fiber materials and provides solutions to medical, automotive, consumer, electronics, industrial, aerospace, and defense markets in the U.S. It carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UFP Technologies has a positive average earnings surprise of 7.91% in the last four quarters. The estimate for fiscal 2017 climbed 19% to $1.39 in the past 60 days. The Zacks Consensus Estimate for fiscal 2018 has also moved north 2% to $1.75. The projected growth rate for fiscal 2017 is 26.36% and for fiscal 2018 at 25.90%.
Mobile Mini, Inc. , a provider of portable storage and specialty containment solutions, also sports a Zacks Rank #2. The Zacks estimate for earnings for fiscal 2017 has moved up 1% to $1.26 in the past 60 days. The Zacks Consensus Estimate for fiscal 2018 has also moved north 1% to $1.44
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>