Here's Why Hold Strategy is Beneficial for Berry Global (BERY)
Berry Global Group, Inc. BERY is benefiting from its robust product portfolio, the bulk of which includes consumer non-discretionary products, despite challenges related to supply chain and labor and inflationary pressure.
Strength in its food service end market is driving its Consumer Packaging North America segment. The Health, Hygiene & Specialties segment is benefiting from robust demand in the hygiene end market. Stable demand in the retail food and beverage end market is driving the Consumer Packaging International segment.
Berry Global’s efforts to reward its shareholders through dividend payments and share buybacks are encouraging. In February 2022, the company announced a share repurchase program worth $1 billion. In fiscal 2022 (ended Sep 30, 2022), BERY announced an additional $700 million allocation to its existing share repurchase program. Berry Global bought back shares worth $709 million in fiscal 2022 and $178 million in the first three months of 2023 (ended Dec 31, 2022). The company also paid $33 million in dividends in the first three months of fiscal 2023.
In light of the abovementioned positives, we believe, investors should hold on to BERY stock for now, as suggested by its current Zacks Rank #3 (Hold). In the past six months, the stock has rallied 9.6% against the industry’s 0.7% decline.
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Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Ingersoll Rand Inc. IR presently carries a Zacks Rank of #2 (Buy). IR’s earnings surprise in the last four quarters was 8.5%, on average. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks.
In the past 60 days, Ingersoll Rand’s earnings estimates have increased 3.4% for 2023. The stock has gained 20.5% in the past six months.
A. O. Smith Corporation AOS presently carries a Zacks Rank of 2 and a trailing four-quarter earnings surprise of 3.2%, on average.
AOS’ earnings estimates have increased 4.1% for 2023 in the past 60 days. Shares of A. O. Smith have risen 12.5% in the past six months.
Valmont Industries, Inc. VMI presently has a Zacks Rank of 2. VMI’s earnings surprise in the last four quarters was 11.6%, on average.
In the past 60 days, Valmont’s earnings estimates have increased 0.3% for 2023. The stock has rallied 10.6% in the past six months.
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Valmont Industries, Inc. (VMI) : Free Stock Analysis Report
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
Berry Global Group, Inc. (BERY) : Free Stock Analysis Report
