AptarGroup Bets On Transformation Plan, Innovative Products

On May 23, we issued an updated research report on AptarGroup, Inc. (NYSE:ATR) . The company is poised to gain from its business-transformation plan, innovative product rollouts and acquisitions.

Let’s illustrate these factors in detail.

Business-Transformation Plan: A Key Growth Driver

In late 2017, AptarGroup began a business-transformation plan to drive the 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 2020-end.

Innovation Provides a Competitive Edge

AptarGroup is poised to gain from recent 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 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 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.

In May 2018, 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 partnership with Propeller Health and made a strategic equity investment in the company. These acquisitions will drive growth.

Price Performance

AptarGroup’s shares have gained 20.1% over the past year, against the industry’s decline of 4.6%.

Zacks Rank & Other Stocks to Consider

AptarGroup currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors interested in the Industrial Products sector can also consider other top-ranked players like DMC Global Inc. (NASDAQ:BOOM) , Lawson Products, Inc. (NASDAQ:LAWS) and Roper Technologies, Inc. (NYSE:ROP) , each sporting a Zacks Rank #1.

DMC Global has an estimated earnings growth rate of 79.7% for the ongoing year. The company’s shares have soared 50% in the past year.

Lawson Products has a stellar expected earnings growth rate of 24.5% for the current year. The stock has appreciated 56% in a year’s time.

Roper Technologies has a projected earnings growth rate of 7.9% for 2019. The company’s shares have gained 25% over the past year.

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