Berry Global Group, Inc. (BERY - Free Report) seems to have lost its sheen, thanks to a highly leveraged balance sheet, high cost of sales and uncertainties related to international operations.
The manufacturer and distributor of non-woven specialty materials, engineered materials and consumer packaging products currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company belongs to the Zacks Containers – Paper and Packaging industry, which is at the bottom 34% (with the rank of 168) of more than 250 Zacks industries. We believe that the industry is suffering from adverse impacts of higher costs related to transportation, raw material, fuel and chemical.
It is worth noting that Berry Global reported weaker-than-expected results for third-quarter fiscal 2019 (ended Jun 29, 2019), wherein earnings missed the Zacks Consensus Estimate by 10%. The bottom line also declined 6.3% on a year-over-year basis. The company’s average earnings surprise for the last four quarters was negative 4.14%.
A glance at Berry Global’s price trend in the past three months shows that it has lost nearly 30.2% compared with the industry’s and the Zacks Industrial Products sector’s declines of 10.2% and 5%, respectively. The S&P 500 dipped 1.5% during the same period.
The company’s earnings estimates were lowered, reflecting bearish sentiments. Over the past 60 days, the Zacks Consensus Estimate for Berry Global’s earnings has declined 3.8% to $3.33 for fiscal 2019 (ended September 2019) and 6.8% to $4.08 for fiscal 2020 (ending September 2020).
Berry Global Group, Inc. Price and Consensus