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Here's Why You Should Invest in Berry Global (BERY) Stock Now
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Berry Global Group, Inc. (BERY - Free Report) is well-poised for growth, courtesy of its business strength, organic growth investments, acquired assets and a sound capital deployment strategy.
The Zacks Rank #1 (Strong Buy) company has a market capitalization of $9.9 billion. In the past six months, the stock has appreciated 11.9% compared with the industry's growth of 1%.
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Let's delve into the factors that make investing in the company a smart choice at the moment.
Business Strength: Berry Global has been benefiting from strength across its consumer businesses across foodservice and beverage end markets. Solid momentum across the company's healthcare and construction end markets along with growth in demand for protective films and can liner product lines is likely to drive its performance in the quarters ahead. For fiscal 2022 (ending September 2022), the company anticipates year-over-year organic sales growth of 2%.
Healthy Cash Flow: Strong cash flows allow the company to deploy capital for acquisitions, debt repayment and repurchasing shares. For fiscal 2022, Berry Global anticipates cash flow from operations of $1.7-$1.8 billion and free cash flow of $0.9-$1 billion. In fiscal 2021 (ended September 2021), the company repaid a long-term debt of $3,496 million. Also, in November 2021, it announced an accelerated share repurchase (ASR) program, under which it intends to repurchase common shares worth $50 million. The ASR program will likely be completed in the first quarter of fiscal 2022 (ending December 2021).
Acquisition Benefits: The company's acquired business of RPC Group (July 2019) has boosted its prospects in the plastic and recycled packaging industry. Going forward, it is likely to gain from investments in the latest equipment technologies, advantaged film development, and design for circularity. Also, its decision to open a second manufacturing facility and Global Healthcare Center in Bangalore will extend its research and development expertise and boost production in several major healthcare sectors.
Estimate Revisions: The Zacks Consensus Estimate for Berry Global's earnings is pegged at $7.41 for fiscal 2022, up 18% from the 60-day-ago figure. The consensus estimate for fiscal 2023 (ending September 2023) earnings stands at $7.89, having moved 15.4% north over the same time frame.
Other Key Picks
Some other top-ranked companies from the Zacks Industrial Products sector are discussed below.
FLOW's earnings surprise in the last four quarters was 40.42%, on average.
In the past 60 days, SPX FLOW's earnings estimates have increased 8.4% for 2021 and 23.5% for 2022. Its shares have gained 32.2% in the past six months.
Greif, Inc. (GEF - Free Report) presently flaunts a Zacks Rank #1. GEF's earnings surprise in the last four quarters was 16.76%, on average.
Greif's earnings estimates have increased 5.6% for fiscal 2022 (ending October 2022) in the past 60 days. Its shares have lost 2.5% in the past six months.
Sonoco Products Company (SON - Free Report) presently carries a Zacks Rank #2 (Buy). Its average earnings surprise in the last four quarters was 3.08%.
Sonoco's earnings estimates have increased 0.6% for 2021 and have been unchanged for 2022 in the past 60 days. SON's shares have lost 13.6% in the past six months.
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Here's Why You Should Invest in Berry Global (BERY) Stock Now
Berry Global Group, Inc. (BERY - Free Report) is well-poised for growth, courtesy of its business strength, organic growth investments, acquired assets and a sound capital deployment strategy.
The Zacks Rank #1 (Strong Buy) company has a market capitalization of $9.9 billion. In the past six months, the stock has appreciated 11.9% compared with the industry's growth of 1%.
Let's delve into the factors that make investing in the company a smart choice at the moment.
Business Strength: Berry Global has been benefiting from strength across its consumer businesses across foodservice and beverage end markets. Solid momentum across the company's healthcare and construction end markets along with growth in demand for protective films and can liner product lines is likely to drive its performance in the quarters ahead. For fiscal 2022 (ending September 2022), the company anticipates year-over-year organic sales growth of 2%.
Healthy Cash Flow: Strong cash flows allow the company to deploy capital for acquisitions, debt repayment and repurchasing shares. For fiscal 2022, Berry Global anticipates cash flow from operations of $1.7-$1.8 billion and free cash flow of $0.9-$1 billion. In fiscal 2021 (ended September 2021), the company repaid a long-term debt of $3,496 million. Also, in November 2021, it announced an accelerated share repurchase (ASR) program, under which it intends to repurchase common shares worth $50 million. The ASR program will likely be completed in the first quarter of fiscal 2022 (ending December 2021).
Acquisition Benefits: The company's acquired business of RPC Group (July 2019) has boosted its prospects in the plastic and recycled packaging industry. Going forward, it is likely to gain from investments in the latest equipment technologies, advantaged film development, and design for circularity. Also, its decision to open a second manufacturing facility and Global Healthcare Center in Bangalore will extend its research and development expertise and boost production in several major healthcare sectors.
Estimate Revisions: The Zacks Consensus Estimate for Berry Global's earnings is pegged at $7.41 for fiscal 2022, up 18% from the 60-day-ago figure. The consensus estimate for fiscal 2023 (ending September 2023) earnings stands at $7.89, having moved 15.4% north over the same time frame.
Other Key Picks
Some other top-ranked companies from the Zacks Industrial Products sector are discussed below.
SPX FLOW, Inc. (FLOW - Free Report) presently sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
FLOW's earnings surprise in the last four quarters was 40.42%, on average.
In the past 60 days, SPX FLOW's earnings estimates have increased 8.4% for 2021 and 23.5% for 2022. Its shares have gained 32.2% in the past six months.
Greif, Inc. (GEF - Free Report) presently flaunts a Zacks Rank #1. GEF's earnings surprise in the last four quarters was 16.76%, on average.
Greif's earnings estimates have increased 5.6% for fiscal 2022 (ending October 2022) in the past 60 days. Its shares have lost 2.5% in the past six months.
Sonoco Products Company (SON - Free Report) presently carries a Zacks Rank #2 (Buy). Its average earnings surprise in the last four quarters was 3.08%.
Sonoco's earnings estimates have increased 0.6% for 2021 and have been unchanged for 2022 in the past 60 days. SON's shares have lost 13.6% in the past six months.