AptarGroup (NYSE: ATR) supplies
a broad range of dispensing systems to the fragrance/cosmetic, personal care, pharmaceutical, household and food/beverage markets. Offerings include spray pumps, dispensing closures, nasal pumps, aerosol valves and lotion pumps. The firm operates on five continents and sells most of its products through an in-house sales network.
Investors were pleased earlier in the month, when the company reported Q4 EPS of 47 cents and revenues of $483.8 million. The Street had been looking for 47 cents and $479.4 million. Quarterly sales and profits increased across each business segment. Annual sales reached an all-time record $1.9 billion. Management also guided Q1 EPS to 46-49 cents (47 cent consensus), noting that the firm's broad geographic presence and diverse end-markets positioned it well to withstand any slowness in the U.S. economy.
The stock
popped on the news and has since passed into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the shares with one "strong buy", one "buy" and eight "holds". The ATR P/E ratio (19.81), Price to Book ratio (2.37), Price to Cash Flow ratio (10.03) and EPS Growth rate (27.03%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $32.25 and $44.75. A stop-loss of $34.20 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold a position in the stock discussed above.
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