DOW & P&G China to Recycle Air Capsule E-Commerce Packaging

ATI DOW KOP LIN

Dow Inc. (DOW - Free Report) recently partnered with Procter & Gamble China (P&G China) to create air capsule e-commerce packaging. The air capsule aims to give an effective and efficient solution to protect items while minimizing irrelevant packaging in e-commerce and facilitating recycling.

Air capsule packaging is a significant step toward sustainability in the e-commerce sector as it offers benefits, including a reduction in material weight of more than 40% compared to traditional corrugated parcel boxes.  This will require 25% less trucking and 75% less warehouse space. It will also provide safe and reliable cushion protection and the ability to recycle owing to an all-PE mono-material structure.

A tamper-free opening for content integrity, an easy-to-tear strip and an auto-deflate feature for hassle-free disposal after opening are just a few of the elements that make the packaging design dependable and practical for consumers.

In order to provide plastics with a sustainable future, Dow collaborates closely with partners like P&G China. These initiatives support Dow's sustainability objectives to close the loop by enabling 100% recyclable or reused packaging solutions by 2035 and to reach carbon neutrality by 2050.

Shares of DOW have lost 1.6% over the past year against a 5.3% rise of its industry.

On its first-quarter call, Dow said that its disciplined execution has enhanced its ability to navigate the impact of higher inflation on consumer demand and weak global economic activity through the balance of 2023. The company expects continued benefits from its operational and cost actions as it progresses through the year. It is on track with its actions to deliver $1 billion in cost savings in 2023. DOW is benefiting from its advantaged feedstock positions. It expects oil and gas spreads to further support its strategic cost-advantaged positions.

Zacks Rank & Key Picks

DOW currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks to consider in the basic materials space include Koppers Holdings Inc. (KOP - Free Report) , ATI Inc. (ATI - Free Report) and Linde plc (LIN - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Koppers currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for current-year earnings for KOP is currently pegged at $4.40, implying year-over-year growth of 6.3%. It has a trailing four-quarter earnings surprise of roughly 13.64%, on average. The stock has gained around 36% in a year.

ATI currently carries a Zacks Rank #2. The consensus estimate for current fiscal-year earnings for ATI is currently pegged at $2.24, suggesting year-over-year growth of 12.6%. The stock has gained roughly 67.8% in the past year.

Linde currently carries a Zacks Rank #2. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 3.8% upward in the past 60 days. Linde beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6.9% on average. The stock has gained roughly 25.1% in the past year.

 

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