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Here's Why You Should Hold on to AptarGroup (ATR) Stock Now
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AptarGroup, Inc. (ATR - Free Report) has been benefiting from the COVID-19 pandemic induced surge in demand for hand sanitizers, liquid soap, cleaners and disinfectants. It is also witnessing growth in injectables and active material science solutions markets owing to strong demand for vaccine components and active material science solutions. It is well-poised to grow on its ongoing business-transformation, innovative product launches featuring the company’s pumps, closures and its acquisition strategy.
The stock has long-term expected earnings per share growth rate of 7%. The stock has gained 20.4% in the past six months, compared with the industry’s growth of 16.8%.
At present, AptarGroup carries a Zacks Rank #3 (Hold). It has 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), 2 (Buy) or 3, offer the best investment opportunities for investors. You can see the complete list of today's Zacks #1 Rank stocks here.
Let’s delve deeper and analyze the factors that are driving the stock.
Improved Q1 Results: AptarGroup’s adjusted earnings per share was $1.09 in first-quarter 2021, indicating year-over-year improvement of 10%. It also surpassed the company’s guidance of adjusted earnings per share in the range of 86 cents to 94 cents. AptarGroup has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average earnings surprise being 15%.
Upbeat Q2 Guidance: AptarGroup estimates second-quarter 2021 adjusted earnings per share in the range of 91 cents to 99 cents. The mid-point of the guided range reflects year-over-year growth of 19%.
Return on Assets: AptarGroup currently has a Return on Assets (ROA) of 6.5%, while the industry recorded ROA of 5.3%. An above-average ROA denotes that the company is generating earnings by effectively managing assets.
Upward Estimate Revisions: AptarGroup’s earnings estimates for 2021 has been revised upward by 3.4% over the past 30 days to $4.17. For 2022, the estimate has moved north by 1% to $4.56.
The Zacks Consensus Estimate for 2021 earnings indicates year-over-year growth of 14.6% and an improvement of 9.2% for the next year.
Segments Poised Well on COVID-19 Induced Demand: The Food + Beverage segment is benefiting from higher demand for food dispensing closures as consumers continued to cook at home during the pandemic. The Pharma segment has been witnessing higher sales to the injectables and active material science solutions markets owing to strong demand for vaccine components and active material science solutions. The 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.
Acquisitions Remain a Key Catalyst: AptarGroup remains 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.
Business Transformation Plan to Reap Benefits: AptarGroup is focused on its business-transformation plan to drive top-line growth, bolstering operational excellence, enhancing approach to innovation and improving organizational effectiveness. The company has primarily been committed to transforming its Beauty + Home segment, adding capabilities in Asia, implementing new commercial strategies and capitalizing on fast growing application fields. AptarGroup has also undertaken several cost control measures that will help sustain margins.
Innovative Product Launches: AptarGroup continues to be the preferred choice for brands worldwide. The company’s e-commerce capable high-flow pump was chosen by The Procter & Gamble Company (PG - Free Report) for their new indie brand shampoo. In Europe, the company is providing the pump for in-store refillable personal care products in aluminum bottles for The Body Shop and its fragrance pump is featured on the Flora and Guilty Gucci perfumes by Coty. L'Oreal is utilizing its airless jar for its Revitalift facial skincare product in China. In food and beverage, infant nutrition closure was selected for Creme de la Creme, instant and rich milk powder for Europe and for HiPP combiotic in China.
Meanwhile, in pharma, AptarGroup’s active material science technology was selected to protect two new at-home COVID-19 tests that have received approval from the FDA. Its unidose powder device is being used in a pivotal trial of intranasal powder-based Naloxone by Nasus Pharma. Also, a new nasal spray treatment for allergic rhinitis features AptarGroup’s nasal spray device. In the injectables market, the company continues to support COVID-19 vaccine distributions in all regions.
Stocks to Consider
Some better-ranked stocks in the Industrial Products sector are Deere & Company (DE - Free Report) and AGCO Corporation (AGCO - Free Report) . Both of these stocks carry a Zacks Rank #2.
Deere & Company has a projected earnings growth rate of 84.3% for fiscal 2021. Over the past year, the company’s shares have appreciated 50% over the past six months.
AGCO Corporation has an estimated earnings growth rate of 54.6% for the ongoing year. The company’s shares have gained 62% in the past six months.
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The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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Here's Why You Should Hold on to AptarGroup (ATR) Stock Now
AptarGroup, Inc. (ATR - Free Report) has been benefiting from the COVID-19 pandemic induced surge in demand for hand sanitizers, liquid soap, cleaners and disinfectants. It is also witnessing growth in injectables and active material science solutions markets owing to strong demand for vaccine components and active material science solutions. It is well-poised to grow on its ongoing business-transformation, innovative product launches featuring the company’s pumps, closures and its acquisition strategy.
The stock has long-term expected earnings per share growth rate of 7%. The stock has gained 20.4% in the past six months, compared with the industry’s growth of 16.8%.
At present, AptarGroup carries a Zacks Rank #3 (Hold). It has 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), 2 (Buy) or 3, offer the best investment opportunities for investors. You can see the complete list of today's Zacks #1 Rank stocks here.
Let’s delve deeper and analyze the factors that are driving the stock.
Improved Q1 Results: AptarGroup’s adjusted earnings per share was $1.09 in first-quarter 2021, indicating year-over-year improvement of 10%. It also surpassed the company’s guidance of adjusted earnings per share in the range of 86 cents to 94 cents. AptarGroup has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average earnings surprise being 15%.
Upbeat Q2 Guidance: AptarGroup estimates second-quarter 2021 adjusted earnings per share in the range of 91 cents to 99 cents. The mid-point of the guided range reflects year-over-year growth of 19%.
Return on Assets: AptarGroup currently has a Return on Assets (ROA) of 6.5%, while the industry recorded ROA of 5.3%. An above-average ROA denotes that the company is generating earnings by effectively managing assets.
Upward Estimate Revisions: AptarGroup’s earnings estimates for 2021 has been revised upward by 3.4% over the past 30 days to $4.17. For 2022, the estimate has moved north by 1% to $4.56.
The Zacks Consensus Estimate for 2021 earnings indicates year-over-year growth of 14.6% and an improvement of 9.2% for the next year.
Segments Poised Well on COVID-19 Induced Demand: The Food + Beverage segment is benefiting from higher demand for food dispensing closures as consumers continued to cook at home during the pandemic. The Pharma segment has been witnessing higher sales to the injectables and active material science solutions markets owing to strong demand for vaccine components and active material science solutions. The 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.
Acquisitions Remain a Key Catalyst: AptarGroup remains 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.
Business Transformation Plan to Reap Benefits: AptarGroup is focused on its business-transformation plan to drive top-line growth, bolstering operational excellence, enhancing approach to innovation and improving organizational effectiveness. The company has primarily been committed to transforming its Beauty + Home segment, adding capabilities in Asia, implementing new commercial strategies and capitalizing on fast growing application fields. AptarGroup has also undertaken several cost control measures that will help sustain margins.
Innovative Product Launches: AptarGroup continues to be the preferred choice for brands worldwide. The company’s e-commerce capable high-flow pump was chosen by The Procter & Gamble Company (PG - Free Report) for their new indie brand shampoo. In Europe, the company is providing the pump for in-store refillable personal care products in aluminum bottles for The Body Shop and its fragrance pump is featured on the Flora and Guilty Gucci perfumes by Coty. L'Oreal is utilizing its airless jar for its Revitalift facial skincare product in China. In food and beverage, infant nutrition closure was selected for Creme de la Creme, instant and rich milk powder for Europe and for HiPP combiotic in China.
Meanwhile, in pharma, AptarGroup’s active material science technology was selected to protect two new at-home COVID-19 tests that have received approval from the FDA. Its unidose powder device is being used in a pivotal trial of intranasal powder-based Naloxone by Nasus Pharma. Also, a new nasal spray treatment for allergic rhinitis features AptarGroup’s nasal spray device. In the injectables market, the company continues to support COVID-19 vaccine distributions in all regions.
Stocks to Consider
Some better-ranked stocks in the Industrial Products sector are Deere & Company (DE - Free Report) and AGCO Corporation (AGCO - Free Report) . Both of these stocks carry a Zacks Rank #2.
Deere & Company has a projected earnings growth rate of 84.3% for fiscal 2021. Over the past year, the company’s shares have appreciated 50% over the past six months.
AGCO Corporation has an estimated earnings growth rate of 54.6% for the ongoing year. The company’s shares have gained 62% in the past six months.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>