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5 Reasons to Add AptarGroup (ATR) Stock to Your Portfolio Now


Shares of AptarGroup, Inc. ATR, provider of a range of packaging, dispensing, and sealing solutions, primarily for the beauty, personal care, home care, prescription drug, consumer health care, injectable, and food and beverage markets, has been performing well of late.

If you haven’t taken advantage of the share price appreciation yet, the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead. The Zacks Rank #1 (Strong Buy) stock has an estimated long-term earnings growth rate of 9.33%.

Estimates Northbound

Estimates for AptarGroup have moved up in the past 30 days, reflecting the optimistic outlook of analysts. The earnings estimate for second-quarter fiscal 2017, fiscal 2017 and fiscal 2018 have all gone up in the past 30 days.

For second-quarter fiscal 2017, the Zacks Consensus Estimate for earnings has gone up 4% in the past 30 days and is pegged at 96 cents, depicting a year-over-year growth of 5%. The estimate for fiscal 2017 has gone up 5% to $3.44, reflecting a year-over-year growth of 9.77%. The Zacks Consensus Estimate for earnings for fiscal 2018 has also moved north 4% to $3.73, a year-over-year growth of 8.48%.

Positive Earnings Surprise History

AptarGroup has outpaced the Zacks Consensus Estimate in three of the trailing four quarters, delivering a positive average earnings surprise of 1.78%.

Ahead of the Industry

The company has outperformed the Zacks categorized Containers- Paper/ Packaging subindustry in the past one year. Shares have gained 13.1%, year to date, while the industry registered an increase of 7.1%.

Upbeat Q1

AptarGroup reported record first-quarter 2017 earnings per share of 77 cents, a 4% improvement from the year-ago figure of 74 cents, and came in at the higher end of the company’s guided range of 72–77 cents. Earnings also beat the Zacks Consensus Estimate of 75 cents.

For the second quarter, the company anticipates continued growth in the Pharma and Food + Beverage segments. Earnings are projected to be in the range of 92–97 cents, compared with 91 cents per share reported in the prior-year quarter. Adjusting for changes in foreign currency exchange rates, comparable adjusted earnings per share for the prior year were approximately 87 cents.

Growth Drivers

AptarGroup acquired Mega Airless in 2016. This transaction was a key element of its strategy to expand portfolio and accelerate growth in the airless systems markets. The company has been able to achieve all of the financial targets with Mega through the first year. Going forward, the company expects more acquisitions to drive growth.

AptarGroup is well positioned to grow over the long term in the different markets as it continues to leverage its technologies and processes across business segments. The company continues to focus on key areas such as innovation, sales, marketing and business development and pursue further growth opportunities.

In the quarter, AptarGroup received an order for the first integrated electronic nasal lockout device (AptarGroup’s eLockout). This marks a major milestone for the company given that the eLockout device is the first and only fully integrated electronic nasal drug delivery device to be approved by a European regulatory authority. Also, AptarGroup signed an agreement to acquire a 20% minority ownership position in Kali Care, a Silicon Valley-based technology company, which provides digital-monitoring systems for ophthalmic medications. This is a significant step in AptarGroup’s efforts to leverage its leading drug delivery technologies to develop the next generation of connected electronic devices. These strategic collaborations underline its endeavors to bring innovation in healthcare.

Other Stocks to Consider

Other top ranked stocks worth considering in the same sector are AGCO Corporation AGCO, Caterpillar, Inc. CAT and Rockwell Automation Inc. ROK. 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.

AGCO has an average positive earnings surprise of 40.39% in the trailing four quarters. Caterpillar generated an average positive earnings surprise of 40.25% in the past four quarters. Rockwell Automation has an average positive earnings surprise of 9.89%.

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