UFP Technologies, Inc. UFPT currently seems to be a smart choice for investors seeking exposure in the containers (paper and packaging) space. Solid fundamentals and positive revision in earnings estimates are reflective of healthy growth potential of the stock.
This Newburyport, MA-based company currently sports a Zacks Rank #1 (Strong Buy). It belongs to the Zacks Containers – Paper and Packaging industry, currently placed in the top 7% (with Zacks Industry Rank #19) of more than 250 Zacks industries. Notably, the top 50% of the Zacks-ranked industries tend to outperform the bottom 50% by a factor of more than 2 to 1.
We believe that exposure in consumer-oriented end markets, improvement in purchasing power in Asia, rise in demand for sophisticated packaging and growth in the e-commerce business are beneficial for the industry players.
Below we discussed why investing in UFP Technologies will be a smart choice.
Share Price Performance, Impressive Earnings Outlook: Market sentiments seem to be working in favor of the company over time. In the past year, UFP Technologies’ share price has gained 28.5% compared with the industry’s growth of 7.4%.
It is worth mentioning here that the company’s shares have gained 11.4% since the release of first-quarter 2019 results on May 7, 2019. Its quarterly earnings of 50 cents surpassed the Zacks Consensus Estimate of 40 cents by 25%. Average earnings surprise for the last four quarters was 9.14%.
Contract wins, new internal growth opportunities and synergistic gains from acquired assets will be beneficial for the company going forward.
In the past 60 days, earnings estimates for 2019 and 2020 have been revised upward, reflecting positive sentiments about UFP Technologies’ growth prospects. Currently, the Zacks Consensus Estimate for the company’s earnings is pegged at $2.22 for 2019 and $2.73 for 2020, suggesting growth of 4.2% and 3% from the respective 60-day-ago figures. In addition, earnings estimates for the second quarter of 2019 remained unchanged at 56 cents.
UFP Technologies, Inc. Price and Consensus