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Strength Seen in Sonoco (SON): Can Its 5.8% Jump Turn into More Strength?
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Sonoco (SON - Free Report) shares rallied 5.8% in the last trading session to close at $61.70. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.2% loss over the past four weeks.
SON’s price appreciation is primarily driven by the company’s upbeat earnings guidance for the first-quarter 2022. Given its solid year-to-date results and updated prediction for the remaining period of the current quarter, the company now expects adjusted earnings per share (EPS) in between $1.70 and $1.80 for the March-end quarter, up 35% from fourth-quarter guidance of $1.25 - $1.35. In first-quarter 2021, the company reported an adjusted EPS of $1.00.
Strong recovery in price and cost across most of its businesses are likely to deliver improved operating results in the first quarter. The Ball Metalpack acquisition as well as stellar demand in both Consumer Packaging segment and All Other groups of businesses are expected to drive operating performance in the quarter.
This packaging maker is expected to post quarterly earnings of $1.29 per share in its upcoming report, which represents a year-over-year change of +43.3%. Revenues are expected to be $1.69 billion, up 24.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Sonoco, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SON going forward to see if this recent jump can turn into more strength down the road.
Sonoco is part of the Zacks Containers - Paper and Packaging industry. AptarGroup (ATR - Free Report) , another stock in the same industry, closed the last trading session 0.8% lower at $117.67. ATR has returned 0.2% in the past month.
For AptarGroup, the consensus EPS estimate for the upcoming report has changed +0.5% over the past month to $0.97. This represents a change of -11% from what the company reported a year ago. AptarGroup currently has a Zacks Rank of #3 (Hold).
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Strength Seen in Sonoco (SON): Can Its 5.8% Jump Turn into More Strength?
Sonoco (SON - Free Report) shares rallied 5.8% in the last trading session to close at $61.70. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.2% loss over the past four weeks.
SON’s price appreciation is primarily driven by the company’s upbeat earnings guidance for the first-quarter 2022. Given its solid year-to-date results and updated prediction for the remaining period of the current quarter, the company now expects adjusted earnings per share (EPS) in between $1.70 and $1.80 for the March-end quarter, up 35% from fourth-quarter guidance of $1.25 - $1.35. In first-quarter 2021, the company reported an adjusted EPS of $1.00.
Strong recovery in price and cost across most of its businesses are likely to deliver improved operating results in the first quarter. The Ball Metalpack acquisition as well as stellar demand in both Consumer Packaging segment and All Other groups of businesses are expected to drive operating performance in the quarter.
This packaging maker is expected to post quarterly earnings of $1.29 per share in its upcoming report, which represents a year-over-year change of +43.3%. Revenues are expected to be $1.69 billion, up 24.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Sonoco, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SON going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Sonoco is part of the Zacks Containers - Paper and Packaging industry. AptarGroup (ATR - Free Report) , another stock in the same industry, closed the last trading session 0.8% lower at $117.67. ATR has returned 0.2% in the past month.
For AptarGroup, the consensus EPS estimate for the upcoming report has changed +0.5% over the past month to $0.97. This represents a change of -11% from what the company reported a year ago. AptarGroup currently has a Zacks Rank of #3 (Hold).