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Silgan (SLGN) Scales 52-Week High on a Slew of Positives

SLGN ROP PH CWST

Trades from $3

Silgan Holdings Inc. (SLGN - Free Report) rallied to a new 52-week high of $61.46, eventually closing a tad lower at $61.22 on Mar 20.

Silgan has a market cap of roughly $3.4 billion and the average volume of shares traded in the last three months is around 350.6K. The stock has delivered a one-year return of around 14.3%. The company beat the Zacks Consensus Estimate in two out of the trailing four quarters, with an average positive surprise of 4.51%.

Silgan Holdings Inc. Price and Consensus

 

Silgan Holdings Inc. Price and Consensus | Silgan Holdings Inc. Quote

Year to date, Silgan has outperformed the Zacks categorized Containers- Metal/Glass industry. The company’s shares gained around 19.7% during this period, as compared with 4% gain recorded by the industry.



Driving Factors

Despite posting a year-over-year decline in revenues and earnings in 2016, Silgan guided 2017 earnings per share in the range of $3.15–$3.35, the mid-point reflecting year-over-year growth of 17%. For first-quarter 2017, the company projects earnings per share in the range of 48–58 cents, indicating an 18% year-over-year growth at the mid-point.

Silgan continues to enhance profitability through strategic acquisitions and footprint expansion. The company’s acquisition of the metal container manufacturing assets of Van Can expanded and diversified the customer base, geographic presence and product lines of its metal container business in the U.S.

In addition, the company will continue to benefit from the Portola Packaging buyout, which has fortified its Closure business and reinforced the plastic closures offerings in Europe. Silgan has also agreed to acquire WestRock Company’s specialty closures and dispensing systems business that will help boost the scope and breadth of its market leading Closure business.

Notably, Silgan has undertaken several footprint optimization programs across all its businesses, targeted to improve efficiencies, reduce costs and strengthen its competitive position in each of the markets. Moreover, the company is anticipated to benefit from increased investments and consistent focus on footprint optimization programs.

Silgan currently carries a Zacks Rank #3 (Hold).

Key Picks

Better-ranked stocks in the same space include Roper Technologies, Inc. (ROP - Free Report) , Parker-Hannifin Corporation (PH - Free Report) and Casella Waste Systems, Inc. (CWST - Free Report) . All the three stocks flaunt a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.

Roper Technologies has a positive average earnings surprise of 0.92% for the last four quarters. Parker-Hannifin has delivered an average positive earnings surprise of 12.44% in the past four quarters. Casella Waste generated a remarkable positive average earnings surprise of 165.21% over the trailing four quarters.

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