Most of us don't give much thought to commercial packaging products, but they are among the important factors allowing maintenance of our well-supplied lifestyles. One of the world's largest providers of such products is headquartered in Hartsville, South Carolina.

Sonoco Products Company (NYSE: SON) offers industrial and consumer packaging products and services. The company's packaging division makes paper cores, cones and tubes used by customers in the textile, paper, film, and construction industries. The consumer packaging unit manufactures a variety of paper and plastic containers for food, chemicals and personal care items. The packaging services segment provides supply chain management, artwork and displays. The firm manages more than 300 operations in 35 countries. Customers include General Mills (NYSE: GIS), Wal-Mart Stores (NYSE: WMT) and William Wrigley Jr. Co. (NYSE: WWY).

The firm pleased investors last week, when it reported Q1 EPS of 57 cents (ex-items) and revenues of $956 million. Analysts had been looking for 49 cents and $885.4 million. Management also guided Q2 EPS to 55-58 cents (57 cent consensus) and FY07 EPS to $2.36-$2.40 ($2.31 consensus). The CEO cited contributions from recent acquisitions and the ability to raise prices as factors leading to the solid Q1 results. The issue popped above 30-day moving average support on the news and then passed into a bullish "pennant" consolidation pattern. Stocks frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys" and six "holds." The SON P/E ratio (21.27), Price to Sales ratio (1.12), Price to Book ratio (3.46), Sales Growth rate (16.73%) and EPS Growth rate (23.91%) compare favorably with industry, sector and S&P 500 averages.

Institutional investors hold about 60% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 12 months, it has traded between $29.45 and $43.69. A stop-loss of $37 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.