AptarGroup Grows On Strategic Moves & Strong Pharma Business

On Feb 20, we issued an updated research report on AptarGroup, Inc. (NYSE:ATR) . The company is poised to gain from its focus on strategies and business-transformation plan. Its Pharma business will benefit from drug delivery innovation.

Let’s illustrate these growth factors in detail.

AptarGroup to Gain From Focus on Strategies

AptarGroup projects earnings per share for first-quarter 2018 in the range of 90-95 cents, reflecting year-over-year growth of 1.6% at the mid-point. The company expects each segment to report elevated first-quarter revenues over the prior year. The outlook is backed by its focus on strategies, including transformation activities in the Beauty + Home segment and select G&A functions.

Business-Transformation Plan to Fuel Growth

In late 2017, AptarGroup began a business-transformation plan in a bid to become a more agile, competitive and customer-centric business. This plan includes a wide range of initiatives to drive sales growth, enhance operational excellence, and improve organizational health and effectiveness. AptarGroup is poised to gain from its focus on the plan which will yield annual recurring incremental EBITDA of approximately $80 million by the end of 2020.

Pharma Business Remains a Tailwind

AptarGroup’s Pharma segment will continue to improve on the back of drug delivery innovation. The company also remains focused on partnering with customers to supply extraordinary medicines and treatments. Further, it has invested in additional capacity at its Congers, NY facility to better serve U.S. customers in the injectables market.

Share Price Performance

AptarGroup has outperformed its industry with respect to price performance over the past year. The stock has gained around 22.7%, while the industry has recorded growth of 7.6% during the same time frame.

Zacks Rank & Other Stocks to Consider

AptarGroup currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the same sector are Graphic Packaging Holding Company (NYSE:GPK) , Packaging Corporation of America (NYSE:PKG) and Bemis Company, Inc. (NYSE:BMS) . All three stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Graphic Packaging has a long-term earnings growth rate of 5%. Its shares have rallied 14.4%, over the past six months.

Packaging Corporation of America has a long-term earnings growth rate of 8.3%. The company’s shares have been up 9.3% during the same time frame.

Bemis has a long-term earnings growth rate of 10.3%. The stock has gained 9.1% in six months’ time.

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