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AptarGroup (ATR) Hits 52-Week High: What's Driving the Stock?
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Shares of AptarGroup, Inc. (ATR - Free Report) scaled a fresh 52-week high of $131.99 on Dec 14, before retracting to close at $130.45. The company has been benefiting from COVID-19 pandemic induced strong demand for pharmaceutical products, sanitizers, liquid soaps and disinfectants featuring the company’s solutions. Anticipated benefits from its business-transformation plan, acquisitions and innovative product launches have also been contributing to the upside.
The company has a market capitalization of $8.3 billion. Average volume of shares traded over the last three months is approximately 192.6K. AptarGroup has an expected long-term earnings per share growth rate of 7%. The company has a trailing four-quarter earnings surprise of 10.9%, on average.
AptarGroup’s current-year earnings estimates have been revised upward by 8% to $3.62 per share over the past 60 days. The same for 2021 has moved north by 7% to $4.11 per share.
Share Price Performance
The stock has gained 11.1% year to date, compared with the industry’s growth of 8.4%.
Driving Factors
Q3 Earnings Beat: AptarGroup’s adjusted earnings per share in the quarter improved 3% year over year to $1.00 and beat the Zacks Consensus Estimate of 84 cents.
Upbeat Q4 Guidance: AptarGroup projects adjusted earnings per share for fourth-quarter 2020 between 84 cents and 92 cents. The mid-point of the guided range reflects year-over-year growth of 10%.
Pandemic-Induced Demand to Aid Growth: AptarGroup’s Beauty + Home segment will continue to benefit from high sales in the personal care market courtesy of hand sanitizers and liquid soaps, and increased sales to the home care market primarily related to cleaners and disinfectants amid the pandemic. The Pharma segment has also been witnessing growth driven by demand for existing medicines.
Transformation Plan, Cost Reduction to Drive Margins: AptarGroup is focused on strengthening its business-transformation plan in a bid to drive top line, boosting operational excellence, enhancing approach to innovation and improving organizational effectiveness. The company’s ongoing cost control measures, which include reduction of temporary labor headcount, furloughs, wage cuts and cutting down discretionary spending, will also help sustain margins.
Preferred Choice for Different Brands: AptarGroup’s products that include dispensing pumps, closures and aerosol valves continue to be the choice for innovative product launches across the world. In the Pharma segment, AdhereIT — the connected intuitive and user-friendly onboarding solution for patients with chronic conditions who use auto injectors to self-administer medications at home — has been launched.
Moreover, The Procter & Gamble Company (PG - Free Report) recently launched Vicks Sinex Severe Ultra Fine Mist in the United States featuring AptarGroup’s Bag-on-Valve system and actuator. Further, in the Beauty + Home segment, AptarGroup’s pumps and closures continue to be the preferred choice across sanitizing and cleansing products globally. Unilever also launched an antibacterial spray in Mexico, featuring the company’s spray pump and an antibacterial hand soap featuring closure.
Successful Acquisitions to Aid Growth: AptarGroup remains committed to business expansion through buyouts to expand the scope of technologies, geographic presence and product offerings. Notable buyouts include Fusion Packaging, Nanopharm, Gateway Analytical, CSP Technologies and Noble International.
Some other top-ranked stocks in the Industrial Products sector include Silgan Holdings Inc. (SLGN - Free Report) and Avery Dennison Corporation (AVY - Free Report) . Both of these stocks carry a Zacks Rank #2, at present.
Silgan has an estimated earnings growth rate of 38% for the ongoing year. Shares of the company have appreciated 14% year to date.
Avery Dennison has a projected earnings growth rate of 4.6% for the current year. Year to date, the company’s shares have gained 14%.
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AptarGroup (ATR) Hits 52-Week High: What's Driving the Stock?
Shares of AptarGroup, Inc. (ATR - Free Report) scaled a fresh 52-week high of $131.99 on Dec 14, before retracting to close at $130.45. The company has been benefiting from COVID-19 pandemic induced strong demand for pharmaceutical products, sanitizers, liquid soaps and disinfectants featuring the company’s solutions. Anticipated benefits from its business-transformation plan, acquisitions and innovative product launches have also been contributing to the upside.
The company has a market capitalization of $8.3 billion. Average volume of shares traded over the last three months is approximately 192.6K. AptarGroup has an expected long-term earnings per share growth rate of 7%. The company has a trailing four-quarter earnings surprise of 10.9%, on average.
AptarGroup’s current-year earnings estimates have been revised upward by 8% to $3.62 per share over the past 60 days. The same for 2021 has moved north by 7% to $4.11 per share.
Share Price Performance
The stock has gained 11.1% year to date, compared with the industry’s growth of 8.4%.
Driving Factors
Q3 Earnings Beat: AptarGroup’s adjusted earnings per share in the quarter improved 3% year over year to $1.00 and beat the Zacks Consensus Estimate of 84 cents.
Upbeat Q4 Guidance: AptarGroup projects adjusted earnings per share for fourth-quarter 2020 between 84 cents and 92 cents. The mid-point of the guided range reflects year-over-year growth of 10%.
Pandemic-Induced Demand to Aid Growth: AptarGroup’s Beauty + Home segment will continue to benefit from high sales in the personal care market courtesy of hand sanitizers and liquid soaps, and increased sales to the home care market primarily related to cleaners and disinfectants amid the pandemic. The Pharma segment has also been witnessing growth driven by demand for existing medicines.
Transformation Plan, Cost Reduction to Drive Margins: AptarGroup is focused on strengthening its business-transformation plan in a bid to drive top line, boosting operational excellence, enhancing approach to innovation and improving organizational effectiveness. The company’s ongoing cost control measures, which include reduction of temporary labor headcount, furloughs, wage cuts and cutting down discretionary spending, will also help sustain margins.
Preferred Choice for Different Brands: AptarGroup’s products that include dispensing pumps, closures and aerosol valves continue to be the choice for innovative product launches across the world. In the Pharma segment, AdhereIT — the connected intuitive and user-friendly onboarding solution for patients with chronic conditions who use auto injectors to self-administer medications at home — has been launched.
Moreover, The Procter & Gamble Company (PG - Free Report) recently launched Vicks Sinex Severe Ultra Fine Mist in the United States featuring AptarGroup’s Bag-on-Valve system and actuator. Further, in the Beauty + Home segment, AptarGroup’s pumps and closures continue to be the preferred choice across sanitizing and cleansing products globally. Unilever also launched an antibacterial spray in Mexico, featuring the company’s spray pump and an antibacterial hand soap featuring closure.
Successful Acquisitions to Aid Growth: AptarGroup remains committed to business expansion through buyouts to expand the scope of technologies, geographic presence and product offerings. Notable buyouts include Fusion Packaging, Nanopharm, Gateway Analytical, CSP Technologies and Noble International.
Zacks Rank & Other Stocks to Consider
AptarGroup currently sports a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the Industrial Products sector include Silgan Holdings Inc. (SLGN - Free Report) and Avery Dennison Corporation (AVY - Free Report) . Both of these stocks carry a Zacks Rank #2, at present.
Silgan has an estimated earnings growth rate of 38% for the ongoing year. Shares of the company have appreciated 14% year to date.
Avery Dennison has a projected earnings growth rate of 4.6% for the current year. Year to date, the company’s shares have gained 14%.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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