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Amcor (AMCR) Scales 52-Week High: What's Driving the Stock?

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Shares of Amcor (AMCR - Free Report) have scaled a new 52-week high of $10.96 on Aug 21, before closing the session a tad lower at $10.93.

AMCR currently has a market capitalization of $15.8 billion and a Zacks Rank #3 (Hold).

So far this year, Amcor’s shares have gained 13.4%, outperforming the industry's 11.6% growth and the Industrial Products sector’s 6.7% rise.

 

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What’s Driving the Amcor Stock?

Recovery in Volumes in Q4: The company recently reported upbeat fourth-quarter and fiscal 2024 results on Aug 15, 2024. Adjusted earnings per share (EPS) were 21 cents in the quarter, up 9.3% from the prior-year quarter. The improvement was attributed to year-over-year volume growth and lower costs. Also, the company returned to volume growth after seven straight quarters of declines, mainly led by the Flexibles segment. 

Amcor’s revenues, however, dipped 3.8% year over year to $3.54 billion. This was due to the pass-through of lower raw material costs and unfavorable foreign currency translation. Price/mix was down 3% year over year while volumes returned to growth at 1%. 

Upbeat Guidance for FY25: Amcor reported an adjusted EPS of 70 cents in fiscal 2024, which was within the company’s guided range of 68.5-71 cents. Amcor projects fiscal 2025 EPS to be between 72 cents and 76 cents. This indicates year-over-year growth in the range of 3-9%.

Amcor’s adjusted free cash flow in fiscal 2024 was $952 million, which marked a 12% improvement from the prior fiscal year. The company expects adjusted free cash flow in fiscal 2025 to be in the range of $0.9 - $1 billion.

Dividend Hike: The company’s board of directors raised its dividend by 2% to 12.50 cents per share. This takes its dividend yield to 4.57%, higher than the industry’s 2.70%. 

Decarbonization Roadmap: Amcor also divulged its Decarbonization Roadmap to reduce greenhouse gas emissions. It aims to bring innovation to product designs to lower the carbon footprint. It also intends to increase the use of recycled materials in its packaging solutions and transition to renewable sources to power its operations. 

Amcor also will ensure that suppliers meet sustainability standards and align with its decarbonization targets. The company will also focus on enhancing operational efficiency through actions such as improving water and waste management, boosting energy efficiency and upgrading equipment.

Stocks to Consider

Some better-ranked stocks from the Industrial Products sector are Mueller Water Products (MWA - Free Report) , Northwest Pipe Company (NWPX - Free Report) and Packaging Corporation of America (PKG - Free Report) . Each of these stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Mueller Water Products’ 2024 earnings is pegged at 93 cents per share, which indicates year-over-year growth of 47.6%. The consensus estimate for earnings has gone up 17.7% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 64.1%. MWA shares have gained 42.9% year to date.

Northwest Pipe has an average trailing four-quarter earnings surprise of 20.15%. The Zacks Consensus Estimate for NWPX’s 2024 earnings is pinned at $2.96 per share, which indicates year-over-year growth of 41.6%. Estimates have moved 20.3% north in the past 60 days. The company’s shares have gained 44.5% so far this year.

The Zacks Consensus Estimate for Packaging Corporation of America’s 2024 earnings is pegged at $8.71 per share. The consensus estimate for earnings has moved up 4.6% in the past 60 days. The estimate indicates year-over-year growth of 0.11%. The company has a trailing four-quarter average earnings surprise of 8.6%. PKG shares have gained 24% so far this year.

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