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Here's Why AptarGroup (ATR) Stock is an Attractive Pick Now
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AptarGroup, Inc. (ATR - Free Report) looks promising at the moment, aided by heightening demand for pharmaceutical products, hand sanitizers and liquid soap, and cleaners and disinfectants, on account of the coronavirus pandemic. Anticipated benefits from its business-transformation plan, acquisitions and innovative product launches will likely drive its performance in the days to come.
The stock has gained 18.7% over the past year, outperforming the industry’s growth of 17.4%. It has a long-term expected earnings per share growth rate of 7%.
The company currently carries a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let's delve deeper into the factors that make the AptarGroup stock a compelling investment option at the moment.
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%.
Earnings Surprise History
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average earnings surprise being 10.9%.
Return on Assets: AptarGroup currently has a Return on Assets (ROA) of 6.2%, while the industry recorded ROA of 5.1%. An above-average ROA denotes that the company is generating earnings by effectively managing assets.
Upbeat Estimate Revision Activity
AptarGroup’s earnings estimates for 2021 has been revised upward by 0.2% over the past 30 days to $4.12 per share.
Other Growth Drivers
AptarGroup’s Beauty + Home segment will continue to gain from high sales in the personal care market related to 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 on demand for existing medicines.
The company has undertaken several cost-control measures that include reducing temporary labor headcount, furloughs and wage reductions, and elimination of business travel. The company has also been trimming discretionary spending and modifying production schedules. This will help sustain margins. Moreover, AptarGroup is focused on growing business-transformation plan to drive top-line growth, bolstering operational excellence, enhancing approach to innovation and improving organizational effectiveness.
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.
Also, The Procter & Gamble Company (PG - Free Report) 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 unveiled an antibacterial spray in Mexico, featuring the company’s spray pump and an antibacterial hand soap featuring closure.
The company is committed to business expansion through acquisitions to expand the scope of technologies, geographic presence and product offerings. Notable buyouts include Fusion Packaging, Nanopharm, Gateway Analytical, CSP Technologies and Noble International.
AGCO has a long-term earnings growth rate of 13.2%. The stock has appreciated 50.4% in a year’s time.
Crown Holdings has a long-term earnings growth rate of 5%. Shares of the company have gained 37.4% in the past year.
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Here's Why AptarGroup (ATR) Stock is an Attractive Pick Now
AptarGroup, Inc. (ATR - Free Report) looks promising at the moment, aided by heightening demand for pharmaceutical products, hand sanitizers and liquid soap, and cleaners and disinfectants, on account of the coronavirus pandemic. Anticipated benefits from its business-transformation plan, acquisitions and innovative product launches will likely drive its performance in the days to come.
The stock has gained 18.7% over the past year, outperforming the industry’s growth of 17.4%. It has a long-term expected earnings per share growth rate of 7%.
The company currently carries a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let's delve deeper into the factors that make the AptarGroup stock a compelling investment option at the moment.
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%.
Earnings Surprise History
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average earnings surprise being 10.9%.
Return on Assets: AptarGroup currently has a Return on Assets (ROA) of 6.2%, while the industry recorded ROA of 5.1%. An above-average ROA denotes that the company is generating earnings by effectively managing assets.
Upbeat Estimate Revision Activity
AptarGroup’s earnings estimates for 2021 has been revised upward by 0.2% over the past 30 days to $4.12 per share.
Other Growth Drivers
AptarGroup’s Beauty + Home segment will continue to gain from high sales in the personal care market related to 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 on demand for existing medicines.
The company has undertaken several cost-control measures that include reducing temporary labor headcount, furloughs and wage reductions, and elimination of business travel. The company has also been trimming discretionary spending and modifying production schedules. This will help sustain margins. Moreover, AptarGroup is focused on growing business-transformation plan to drive top-line growth, bolstering operational excellence, enhancing approach to innovation and improving organizational effectiveness.
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.
Also, The Procter & Gamble Company (PG - Free Report) 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 unveiled an antibacterial spray in Mexico, featuring the company’s spray pump and an antibacterial hand soap featuring closure.
The company is committed to business expansion through acquisitions to expand the scope of technologies, geographic presence and product offerings. Notable buyouts include Fusion Packaging, Nanopharm, Gateway Analytical, CSP Technologies and Noble International.
Other Stocks to Consider
Other top-ranked stocks in the Industrial Products sector include AGCO Corporation (AGCO - Free Report) and Crown Holdings, Inc. (CCK - Free Report) . While AGCO flaunts a Zacks Rank 1, Crown Holdings carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AGCO has a long-term earnings growth rate of 13.2%. The stock has appreciated 50.4% in a year’s time.
Crown Holdings has a long-term earnings growth rate of 5%. Shares of the company have gained 37.4% in the past year.
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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