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AptarGroup's Deal With Loop Offers Durable Packaging Solution

Zacks Equity Research

 AptarGroup, Inc. ATR recently entered into a partnership with Loop — TerraCycle’s global circular shopping platform. Loop’s innovative shopping platform enables customers to purchase their products in reusable packaging.

Products are delivered to customers’ doorstep in a Loop tote, which eliminates the requirement for disposable, single-use shipping materials. Once customers have used their products, they place the empty packaging into the tote and schedule a pick up.

Loop cleans and replenishes all returned containers, and makes them ready to be shipped again. Interestingly, this process creates a hassle-free, sustainable and circular product experience. Currently, AptarGroup provides lotion pumps for several products on Loop’s online shopping platform.

AptarGroup’s strategic affiliation with TerraCycle on the Loop e-commerce platform supports its consumers’ vision for a circular economy, where packaging is not reduced to waste. Moreover, AptarGroup will provide better designed products for reuse through further collaboration with the world’s leading brands.
In 2017, AptarGroup began a business-transformation plan to drive top-line growth, boost operational excellence, enhance its approach to innovation and improve organizational effectiveness. The company remains on track with its business transformation, which primarily focuses on the Beauty + Home segment.

AptarGroup remains committed to expand its business 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.

This June, AptarGroup acquired Nanopharm and Gateway Analytical, which will likely help expand its service portfolio that supports pharmaceutical and biotech customers. Previously, the company had also acquired Reboul and several innovation companies, including Stelmi, Mega Airless, and had purchased a minority investment in Kali Care, Inc. Last year, it also expanded its partnership with Propeller Health and made a strategic equity investment in the company. These acquisitions will propel AptarGroup’s growth. Also, the company’s product roll outs in its segments will stoke revenue growth.
Share Price performance

The company’s shares have gained 17.8% over the past year, outperforming the industry’s loss of 33.4%.


Zacks Rank & Key Picks

AptarGroup currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the Industrial Products sector are Zebra Technologies Corporation ZBRA, Avery Dennison Corporation AVY and Tetra Tech, Inc. TTEK. While Zebra Technologies currently sports a Zacks Rank #1 (Strong Buy), Avery Dennison and Tetra Tech carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Zebra Technologies has a projected earnings growth rate of 16.71% for the current year. The stock has gained 21.4% in a year’s time.

Avery Dennison has an estimated earnings growth rate of 8.42% for 2019. The company’s shares have rallied 11.6% in the past year.

Tetra Tech has an expected earnings growth rate of 15.97% for the ongoing year. The stock has appreciated 16.6% over the past year.

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