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Amcor (AMCR) Rolls Out Recyclable Shrink Bag for Food Packaging

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Amcor Plc (AMCR - Free Report) has unveiled its first recyclable shrink bag — Eco-Tite R — for fresh and processed meat, poultry and cheese producers in Europe. The bag is designed to maximise shelf-life, reduce food waste, maintain food safety as well as can be recycled in existing polyethylene (PE) plastic recycling streams. This will enable customers to recycle their poultry, cheese and meat packaging while getting benefits of longer-lasting food.

Amcor’s Eco-TiteR is a mono-PE packaging with multi-layer, which maintains a high barrier to oxygen and water vapour even when exposed to high-moisture environments, such as refrigerators and cooler cases. It provides an edge over PVDC packaging, which is not recyclable in chemical or mechanical recycling systems.

The latest innovation supports Amcor's commitment to make all of the company’s packaging to be recyclable by 2025.

Last month, the company reported first-quarter fiscal 2021 adjusted earnings per share of 15.80 cents, which beat the Zacks Consensus Estimate of 15 cents. Notably, the bottom line also improved 18% year over year from the 13.40 cents reported in the prior-year quarter. The upside was primarily driven by stellar demand and improved performances across its segments.

Backed by the improved fiscal first-quarter performance, Amcor expects adjusted constant currency earnings per share growth of approximately 7-12% in fiscal 2021 compared with the previous guidance of 5-10% growth. The company is poised to gain from the solid packaging demand for essential products.

Share Price Performance

The company’s shares have gained 8.8% over the past year, outperforming the industry’s growth of 11.6%.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the Industrial Products sector include iRobot Corporation (IRBT - Free Report) , Crown Holdings, Inc. (CCK - Free Report) and SiteOne Landscape Supply, Inc. (SITE - Free Report) . While iRobot flaunts a Zacks Rank #1 (Strong Buy), Crown Holdings and SiteOne Landscape carry a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

iRobot has an estimated earnings growth rate of 18.8% for the ongoing year. Shares of the company have appreciated 75.7% in the past year.

Crown Holdings has a projected earnings growth rate of 11.7% for fiscal 2020. Over the past year, the company’s shares have gained 29.6%.
SiteOne

Landscape has an expected earnings growth rate of 28.6% for 2020. The stock has climbed 56.1% in a year’s time.

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