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Berry Global (BERY - Free Report) is a Zacks Rank #5 (Strong Sell) as estimates fell substantially following a recent earnings miss. The stock is now the Bear of the Day, so let's take a look at what happened here.
Description
Berry Global Group, Inc. manufactures and distributes nonwoven specialty materials, engineered materials and consumer packaging products in the market. The company services personal care, healthcare as well as beverage and food markets in South America, North America, Asia and Europe. This Evansville, IN-based company was formerly known as Berry Plastics Group, Inc, but changed its official name to Berry Global Group, Inc in April 2017. The company employs around 24,000 people globally.
Earnings History
The earnings history here is not he worst I have ever seen, but it is not the best. I see two misses in the last two reports and before that there were two beats. The misses, however, are bigger than the beats on a percentage basis and that makes the average surprise a negative 4% over the last four quarters.
Estimate Revisions
Esimates are dropping in a big way for this stock. I see the current quarter moving from $0.90 to $0.74 over the last 90 days. The next quarter also has seen a move lower from $0.82 to $0.70 over the same time horizon.
The Zacks Rank pays the most attention to annual numbers and over the last 60 days we have seen the 2019 number move from $3.41 to $3.25. The 2020 number has slipped from $4.28 to $3.82 over that same time period.
Valuation
Growth is slowing here, with the top line contracting 6.5% over the last year. That has brought the valuation down to very reasonable levels, withe a forward PE of 11x and a price to sale of 0.7x The price to book at 3.6x is still a little high for me, but if this company can get margins to move higher that should take care of itself.
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Bear Of The Day: Berry Global (BERY)
Berry Global (BERY - Free Report) is a Zacks Rank #5 (Strong Sell) as estimates fell substantially following a recent earnings miss. The stock is now the Bear of the Day, so let's take a look at what happened here.
Description
Berry Global Group, Inc. manufactures and distributes nonwoven specialty materials, engineered materials and consumer packaging products in the market. The company services personal care, healthcare as well as beverage and food markets in South America, North America, Asia and Europe. This Evansville, IN-based company was formerly known as Berry Plastics Group, Inc, but changed its official name to Berry Global Group, Inc in April 2017. The company employs around 24,000 people globally.
Earnings History
The earnings history here is not he worst I have ever seen, but it is not the best. I see two misses in the last two reports and before that there were two beats. The misses, however, are bigger than the beats on a percentage basis and that makes the average surprise a negative 4% over the last four quarters.
Estimate Revisions
Esimates are dropping in a big way for this stock. I see the current quarter moving from $0.90 to $0.74 over the last 90 days. The next quarter also has seen a move lower from $0.82 to $0.70 over the same time horizon.
The Zacks Rank pays the most attention to annual numbers and over the last 60 days we have seen the 2019 number move from $3.41 to $3.25. The 2020 number has slipped from $4.28 to $3.82 over that same time period.
Valuation
Growth is slowing here, with the top line contracting 6.5% over the last year. That has brought the valuation down to very reasonable levels, withe a forward PE of 11x and a price to sale of 0.7x The price to book at 3.6x is still a little high for me, but if this company can get margins to move higher that should take care of itself.
Chart
Berry Global Group, Inc. Price and Consensus
Berry Global Group, Inc. price-consensus-chart | Berry Global Group, Inc. Quote
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This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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