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Key Reasons to Retain Berry Global (BERY) Stock for Now

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Berry Global Group, Inc. (BERY - Free Report) benefits from its robust product portfolio, the bulk of which includes consumer non-discretionary products, despite inflationary increases in costs and expenses and challenges related to supply chain and labor.

Berry Global’s Consumer Packaging North America segment is driven by strength in its consumer businesses across the food and beverage end markets. Robust demand in the healthcare, personal care and pharmaceutical end markets is supporting the growth of the Health, Hygiene & Specialties segment. Strength in consumer business is benefiting the Consumer Packaging International segment. Accretive pricing actions are driving growth of the company’s Engineered Materials segment.

The company follows a balanced capital-allocation strategy, enabling it to utilize its cash flow to improve organic growth capabilities, acquisitions and repay debts. Berry Global acquired RPC Group in July 2019, which enhanced its growth opportunities in the plastic and recycled packaging industry.

Berry Global utilizes its cash flow to reward its shareholders through share-repurchase programs. In February 2022, the company announced a share repurchase program worth $1 billion. In fiscal 2022 (ended Sep 30, 2022), BERY announced an additional $700 million allocation to its existing share repurchase program. It bought back $709 million worth of shares in fiscal 2022.

In light of the above-mentioned positives, we believe, investors should hold on to BERY stock for now, as suggested by its current Zacks Rank #3 (Hold). In the past six months, the stock has rallied 17.2% compared with the industry’s 2.9% increase.

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Stocks to Consider

Some better-ranked companies from the Industrial Products sector are discussed below:

Xylem Inc. (XYL - Free Report) presently sports a Zacks Rank #1 (Strong Buy). XYL’s earnings surprise in the last four quarters was 13.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.

In the past 60 days, Xylem’s earnings estimates have increased 0.1% for 2022. The stock has gained 43% in the past six months.

MRC Global Inc. (MRC - Free Report) presently has a Zacks Rank #2 (Buy). MRC’s earnings surprise in the last four quarters was 103%, on average.

In the past 60 days, MRC Global’s earnings estimates have increased 16.2% for 2022. The stock has gained 13.4% in the past six months.

EnerSys (ENS - Free Report) delivered an average four-quarter earnings surprise of 2.1%. ENS presently carries a Zacks Rank of 2.

ENS’ earnings estimates have increased 0.6% for fiscal 2023 in the past 60 days. The stock has gained 30.6% in the past six months.


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