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Here' Why it is Worth Buying AptarGroup (ATR) Stock Now
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AptarGroup, Inc. (ATR - Free Report) remains well poised to gain from its ongoing business-transformation plan, focus on expanding business through acquisitions and recent innovative product launches. The company’s shares have gained 28.7% year to date, outperforming the industry’s growth of 16.3%.
The company has a Zacks Rank #2 (Buy) and a VGM Score of B. Here V stands for Value, G for Growth and M for Momentum. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors.
Let's delve deeper into the factors that make AptarGroup stock a compelling investment option at the moment.
Strong Q1 Results & Upbeat Q2 Outlook
Solid core sales growth across all segments led to year-over-year improvement of 6% in revenues in the first quarter of 2019. Along with top-line growth, benefits from business transformation, business mix and lower resin cost drove year-over-year growth of 16% in adjusted earnings to $1.07 in the quarter.
AptarGroup projects second-quarter 2019 adjusted earnings per share between $1.09 and $1.15. The mid-point of the guidance reflects growth of 7% over the adjusted figure of $1.05 in the prior-year quarter. For the second quarter of 2019, the company anticipates its core sales to improve in each segment.
Positive Earnings Surprise History
AptarGroup outpaced the Zacks Consensus Estimate over the trailing four quarters, with an average positive earnings surprise being 8.27%.
Positive Growth Estimates
The Zacks Consensus Estimate for fiscal 2019 reflects year-over-year growth of 6.97%. The estimate for fiscal 2020 indicates year-over-year growth of 10.54%. The Zacks Consensus Estimate for both fiscal 2019 and fiscal 2020 has moved up 3% and 2% respectively, over the past 90 days, reflecting brokers’ confidence in the stock.
The stock also has a long-term expected earnings per share growth rate of 10.3%.
AptarGroup Bets on Business-Transformation Plan
In late 2017, AptarGroup began a business-transformation plan to improve the top line, boost operational excellence, enhance approach to innovation and augment organizational effectiveness. The company is on track with its business transformation which primarily focuses on the Beauty + Home segment. The company expects the business-transformation plan to yield incremental EBITDA of approximately $80 million by the end of 2020.
Innovation is the Key
AptarGroup is poised to gain from the latest innovative product launches. In the Pharma segment, the Bidose Nasal Spray Device was recently approved by the U.S. FDA for breakthrough therapy in the field of depression. This vital system is a prime less, intuitive and easy to use device with 360-degree functionality and precise spray characteristic delivering two shots of medicine within the single device. This is the first FDA approval and U.S. launch of a prescription drug utilizing AptarGroup’s patented Bidose Nasal Spray delivery system.
In the Beauty + Home segment, the company has launched a Skin Care Dispensing Pen in China. It features a magnetic applicator which delivers active ingredients to each spot with three times the absorption rate than application with finger. In the Food + Beverage segment, the company has launched a flip-lid closure with SimpliSqueeze Valve technology and a built-in tamper evident pull ring fitment for sauces and condiments.
Acquisitions to Grow Business
AptarGroup remains committed to business expansion through acquisitions to broaden the scope of technologies, geographic presence and product offerings. In sync with this, the company acquired CSP Technologies, a leader in active packaging technology based on proprietary material science expertise.
Last May, the company acquired 100% of the common stock of Reboul, a French manufacturer specializing in stamping, decorating and assembling metal and plastic packaging for the cosmetics and luxury markets. Moreover, it has acquired several companies, including Stelmi, Mega Airless, and made a minority investment in Kali Care, Inc., over the past few years. Last year, it also expanded partnership with Propeller Health and made a strategic equity investment in the company. These acquisitions will propel growth.
Return on Assets (ROA)
AptarGroup currently has a ROA of 7.9%, while the industry's ROA is 6.3%. An above-average ROA denotes that the company is generating earnings by effectively managing assets.
Timken Company has an estimated earnings growth rate of 26.6% for the ongoing year. The company’s shares have gained 34.7% so far this year.
Casella Waste Systems has an expected earnings growth rate of 31.97% for the current year. The stock has appreciated 39.6% in a year’s time.
Harsco has a projected earnings growth rate of 9.1% for 2019. The company’s shares have rallied 33.6% year to date.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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Here' Why it is Worth Buying AptarGroup (ATR) Stock Now
AptarGroup, Inc. (ATR - Free Report) remains well poised to gain from its ongoing business-transformation plan, focus on expanding business through acquisitions and recent innovative product launches. The company’s shares have gained 28.7% year to date, outperforming the industry’s growth of 16.3%.
The company has a Zacks Rank #2 (Buy) and a VGM Score of B. Here V stands for Value, G for Growth and M for Momentum. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors.
Let's delve deeper into the factors that make AptarGroup stock a compelling investment option at the moment.
Strong Q1 Results & Upbeat Q2 Outlook
Solid core sales growth across all segments led to year-over-year improvement of 6% in revenues in the first quarter of 2019. Along with top-line growth, benefits from business transformation, business mix and lower resin cost drove year-over-year growth of 16% in adjusted earnings to $1.07 in the quarter.
AptarGroup projects second-quarter 2019 adjusted earnings per share between $1.09 and $1.15. The mid-point of the guidance reflects growth of 7% over the adjusted figure of $1.05 in the prior-year quarter. For the second quarter of 2019, the company anticipates its core sales to improve in each segment.
Positive Earnings Surprise History
AptarGroup outpaced the Zacks Consensus Estimate over the trailing four quarters, with an average positive earnings surprise being 8.27%.
Positive Growth Estimates
The Zacks Consensus Estimate for fiscal 2019 reflects year-over-year growth of 6.97%. The estimate for fiscal 2020 indicates year-over-year growth of 10.54%. The Zacks Consensus Estimate for both fiscal 2019 and fiscal 2020 has moved up 3% and 2% respectively, over the past 90 days, reflecting brokers’ confidence in the stock.
The stock also has a long-term expected earnings per share growth rate of 10.3%.
AptarGroup Bets on Business-Transformation Plan
In late 2017, AptarGroup began a business-transformation plan to improve the top line, boost operational excellence, enhance approach to innovation and augment organizational effectiveness. The company is on track with its business transformation which primarily focuses on the Beauty + Home segment. The company expects the business-transformation plan to yield incremental EBITDA of approximately $80 million by the end of 2020.
Innovation is the Key
AptarGroup is poised to gain from the latest innovative product launches. In the Pharma segment, the Bidose Nasal Spray Device was recently approved by the U.S. FDA for breakthrough therapy in the field of depression. This vital system is a prime less, intuitive and easy to use device with 360-degree functionality and precise spray characteristic delivering two shots of medicine within the single device. This is the first FDA approval and U.S. launch of a prescription drug utilizing AptarGroup’s patented Bidose Nasal Spray delivery system.
In the Beauty + Home segment, the company has launched a Skin Care Dispensing Pen in China. It features a magnetic applicator which delivers active ingredients to each spot with three times the absorption rate than application with finger. In the Food + Beverage segment, the company has launched a flip-lid closure with SimpliSqueeze Valve technology and a built-in tamper evident pull ring fitment for sauces and condiments.
Acquisitions to Grow Business
AptarGroup remains committed to business expansion through acquisitions to broaden the scope of technologies, geographic presence and product offerings. In sync with this, the company acquired CSP Technologies, a leader in active packaging technology based on proprietary material science expertise.
Last May, the company acquired 100% of the common stock of Reboul, a French manufacturer specializing in stamping, decorating and assembling metal and plastic packaging for the cosmetics and luxury markets. Moreover, it has acquired several companies, including Stelmi, Mega Airless, and made a minority investment in Kali Care, Inc., over the past few years. Last year, it also expanded partnership with Propeller Health and made a strategic equity investment in the company. These acquisitions will propel growth.
Return on Assets (ROA)
AptarGroup currently has a ROA of 7.9%, while the industry's ROA is 6.3%. An above-average ROA denotes that the company is generating earnings by effectively managing assets.
Other Stocks to Consider
Some other top-ranked stocks in the Industrial Products sector are The Timken Company (TKR - Free Report) , Casella Waste Systems, Inc. (CWST - Free Report) and Harsco Corporation , each sporting a Zacks Rank #1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Timken Company has an estimated earnings growth rate of 26.6% for the ongoing year. The company’s shares have gained 34.7% so far this year.
Casella Waste Systems has an expected earnings growth rate of 31.97% for the current year. The stock has appreciated 39.6% in a year’s time.
Harsco has a projected earnings growth rate of 9.1% for 2019. The company’s shares have rallied 33.6% year to date.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>