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Reasons to Add AptarGroup Stock to Your Portfolio Right Now
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AptarGroup, Inc. (ATR - Free Report) remains well poised to gain from its business-transformation plan, innovative product rollouts and acquisitions. The company’s shares have gained 20.8% year to date, outperforming the industry’s growth of 15.6%.
The company has a Zacks Rank #2 (Buy) and a VGM Score of B. Here V stands for Value, G for Growth and M for Momentum. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors.
Let's delve deeper into the factors that make AptarGroup stock a compelling investment option at the moment.
Strong Q1 Results
AptarGroup’s first-quarter 2019 adjusted earnings per share were $1.07, improving 16% from the prior year. The bottom-line figure also outpaced the Zacks Consensus Estimate. Total revenues improved 6% year over year to $744.5 million in the quarter as well as beat the Zacks Consensus Estimate. AptarGroup achieved year-over-year solid core sales growth across all segments during the January-March period. Additionally, benefits from business transformation, business mix and lower resin cost aided its profit margin.
Positive Earnings Surprise History
AptarGroup outpaced the Zacks Consensus Estimate over the trailing four quarters, the average positive earnings surprise being 8.27%.
Business-Transformation Plan: A Key Growth Driver
In late 2017, AptarGroup began a business-transformation plan to drive its top line, boost operational excellence, enhance approach to innovation and improve organizational effectiveness. The company is on track with its business transformation which primarily focuses on the Beauty + Home segment. The company expects the business-transformation plan to yield incremental EBITDA of approximately $80 million by the end of 2020.
Innovation Provides a Competitive Edge
AptarGroup is poised to gain from the latest innovative product launches. In the Pharma segment, the Bidose Nasal Spray Device was recently approved by the U.S. FDA for breakthrough therapy in the field of depression. This vital system is a prime less, intuitive and easy to use device with 360-degree functionality and precise spray characteristic delivering two shots of medicine within the single device. This is the first FDA approval and U.S. launch of a prescription drug using AptarGroup’s patented Bidose Nasal Spray delivery system.
In the Beauty + Home segment, the company has launched a Skin Care Dispensing Pen in China. It features a magnetic applicator which delivers active ingredients to each spot with three times the absorption rate than application with finger. In the Food + Beverage segment, the company has launched a flip-lid closure with SimpliSqueeze Valve technology and a built-in tamper evident pull ring fitment for sauces and condiments.
Acquisitions to Grow Business
AptarGroup remains committed to business expansion through acquisitions to broaden the scope of technologies, geographic presence and product offerings. In sync with this, the company acquired CSP Technologies, a leader in active packaging technology based on proprietary material science expertise.
Last May, AptarGroup acquired 100% of the common stock of Reboul, a French manufacturer specializing in stamping, decorating and assembling metal and plastic packaging for the cosmetics and luxury markets. Moreover, the company has acquired several companies, including Stelmi, Mega Airless, and made a minority investment in Kali Care, Inc., over the past few years. Last year, it also expanded its partnership with Propeller Health and made a strategic equity investment in the company. These acquisitions will propel growth.
Return on Assets (ROA): AptarGroup currently has a ROA of 7.9%, while the industry's ROA is 6.1%. An above-average ROA denotes that the company is generating earnings by effectively managing assets.
Growth Projections: Estimates for AptarGroup have been revised upward over the past 30 days, reflecting brokers’ confidence in the stock. The Zacks Consensus Estimate for current-year earnings per share is pegged at $4.35, representing a year-over-year increase of 8.7%. For 2020, the consensus estimate for earnings per share is pegged at $4.81 calling for a year-over-year increase of 10.54%.
The stock also has a long-term expected earnings per share growth rate of roughly 10.3%.
DMC Global has an estimated earnings growth rate of 83.5% for the ongoing year. The company’s shares have soared 53.6%, in the past year.
Lawson Products has an expected earnings growth rate of 24.5% for the current year. The stock has appreciated 62% in a year’s time.
Harsco has a projected earnings growth rate of 9.1% for 2019. The company’s shares have gained 5.4%, over the past year.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better. See these 7 breakthrough stocks now>>
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Reasons to Add AptarGroup Stock to Your Portfolio Right Now
AptarGroup, Inc. (ATR - Free Report) remains well poised to gain from its business-transformation plan, innovative product rollouts and acquisitions. The company’s shares have gained 20.8% year to date, outperforming the industry’s growth of 15.6%.
The company has a Zacks Rank #2 (Buy) and a VGM Score of B. Here V stands for Value, G for Growth and M for Momentum. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors.
Let's delve deeper into the factors that make AptarGroup stock a compelling investment option at the moment.
Strong Q1 Results
AptarGroup’s first-quarter 2019 adjusted earnings per share were $1.07, improving 16% from the prior year. The bottom-line figure also outpaced the Zacks Consensus Estimate. Total revenues improved 6% year over year to $744.5 million in the quarter as well as beat the Zacks Consensus Estimate. AptarGroup achieved year-over-year solid core sales growth across all segments during the January-March period. Additionally, benefits from business transformation, business mix and lower resin cost aided its profit margin.
Positive Earnings Surprise History
AptarGroup outpaced the Zacks Consensus Estimate over the trailing four quarters, the average positive earnings surprise being 8.27%.
Business-Transformation Plan: A Key Growth Driver
In late 2017, AptarGroup began a business-transformation plan to drive its top line, boost operational excellence, enhance approach to innovation and improve organizational effectiveness. The company is on track with its business transformation which primarily focuses on the Beauty + Home segment. The company expects the business-transformation plan to yield incremental EBITDA of approximately $80 million by the end of 2020.
Innovation Provides a Competitive Edge
AptarGroup is poised to gain from the latest innovative product launches. In the Pharma segment, the Bidose Nasal Spray Device was recently approved by the U.S. FDA for breakthrough therapy in the field of depression. This vital system is a prime less, intuitive and easy to use device with 360-degree functionality and precise spray characteristic delivering two shots of medicine within the single device. This is the first FDA approval and U.S. launch of a prescription drug using AptarGroup’s patented Bidose Nasal Spray delivery system.
In the Beauty + Home segment, the company has launched a Skin Care Dispensing Pen in China. It features a magnetic applicator which delivers active ingredients to each spot with three times the absorption rate than application with finger. In the Food + Beverage segment, the company has launched a flip-lid closure with SimpliSqueeze Valve technology and a built-in tamper evident pull ring fitment for sauces and condiments.
Acquisitions to Grow Business
AptarGroup remains committed to business expansion through acquisitions to broaden the scope of technologies, geographic presence and product offerings. In sync with this, the company acquired CSP Technologies, a leader in active packaging technology based on proprietary material science expertise.
Last May, AptarGroup acquired 100% of the common stock of Reboul, a French manufacturer specializing in stamping, decorating and assembling metal and plastic packaging for the cosmetics and luxury markets. Moreover, the company has acquired several companies, including Stelmi, Mega Airless, and made a minority investment in Kali Care, Inc., over the past few years. Last year, it also expanded its partnership with Propeller Health and made a strategic equity investment in the company. These acquisitions will propel growth.
Return on Assets (ROA): AptarGroup currently has a ROA of 7.9%, while the industry's ROA is 6.1%. An above-average ROA denotes that the company is generating earnings by effectively managing assets.
Growth Projections: Estimates for AptarGroup have been revised upward over the past 30 days, reflecting brokers’ confidence in the stock. The Zacks Consensus Estimate for current-year earnings per share is pegged at $4.35, representing a year-over-year increase of 8.7%. For 2020, the consensus estimate for earnings per share is pegged at $4.81 calling for a year-over-year increase of 10.54%.
The stock also has a long-term expected earnings per share growth rate of roughly 10.3%.
AptarGroup, Inc. Price and Consensus
AptarGroup, Inc. price-consensus-chart | AptarGroup, Inc. Quote
Other Stocks to Consider
Some other top-ranked stocks in the Industrial Products sector are DMC Global Inc. (BOOM - Free Report) , Lawson Products, Inc. and Harsco Corporation , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DMC Global has an estimated earnings growth rate of 83.5% for the ongoing year. The company’s shares have soared 53.6%, in the past year.
Lawson Products has an expected earnings growth rate of 24.5% for the current year. The stock has appreciated 62% in a year’s time.
Harsco has a projected earnings growth rate of 9.1% for 2019. The company’s shares have gained 5.4%, over the past year.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>