Shares of AptarGroup, Inc. ATR scaled a new 52-week high of $79.04 on Mar 30, eventually closing at $78.73. The stock price appreciation continues to come on the back of expected benefits from broad product diversification, expansive geographic reach and the company’s focus on reducing costs.
AptarGroup has a market cap of $4.95 billion. Average volume of shares traded over the last three months is approximately 342K. The company has a year-to-date return of around 7.79% and has outperformed the Zacks Consensus Estimate in each of the four trailing quarters with an average positive surprise of 11%.
Growth Drivers
AptarGroup’s share price started soaring since it reported record fourth-quarter 2015 earnings per share of 67 cents on Feb 4. Earnings improved 18% from the year-ago figure of 57 cents, also surpassing the company’s guided range of 61–66 cents. For the first quarter of 2016, AptarGroup projects earnings per share, excluding impacts from costs associated with the Mega Airless acquisition, in the range of 69–74 cents per share.
AptarGroup is focused on reducing costs, while it invests in innovation and new solutions that will help its customers grow their businesses. The company also boasts a strong financial position. In 2015, the company executed its balanced capital allocation strategy.
AptarGroup also completed its accelerated share repurchase program, increased its dividend and announced a strategic acquisition in early 2016. On Feb 29, the company completed the acquisition of Mega Airless, after receiving the necessary regulatory approvals. This strategic acquisition adds complementary products to the company’s already diversified business portfolio and expands market coverage. Meanwhile, the company is continuing to invest in projects that drive profitable growth and return value to shareholders.
Moreover, the company continues to grow its product portfolio within new application fields. Its airless serum dropper, originally developed for the skin market, is now featured on a new luxury hair serum product in Europe. Also, AptarGroup is entering the dish care market in Asia, where it sees immense growth opportunities. The company has also forayed into new application fields. Its nasal spray pump has featured on the first FDA-approved, ready-to-use, needle-free nasal spray product called Narcan, a life-saving medication that can stop or reverse the effects of an opioid overdose.
AptarGroup also continues to see success with its closures featuring the SimpliSqueeze valve for inverted packaging. Further, it recently helped in the launch of several Heinz mayonnaise and barbecue sauces in Latin America. Overall, AptarGroup is well positioned to grow over the long term in different markets, as it continues to leverage its technologies and processes across business segments.
AptarGroup currently has a Zacks Rank #2 (Buy).
Other Stocks to Consider
Some of the other stocks worth considering in the sector include Sonoco Products Co. SON, Astec Industries, Inc. ASTE and Graham Corporation GHM. All three stocks carry the same Zacks Rank as AptarGroup.
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