NEW YORK (TheStreet) -- AptarGroup (ATR) - Get Report , a packaging delivery solutions provider, broke out to the upside in late July, but quickly retreated before launching another upside move in late September, see chart below.
This chart of ATR, above, also shows that the On-Balance-Volume (OBV) line has been up since May. Also the 50-day and 200-day simple moving averages have been very positive since early August.
This longer-term view of ATR, above, shows a positive OBV line on this timeframe and a very positive Moving Average Convergence Divergence (MACD) oscillator. Traders should stay on the long side of ATR, using an appropriate stop-loss point.
TheStreet Ratings team rates APTARGROUP INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
We rate APTARGROUP INC (ATR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- APTARGROUP INC has improved earnings per share by 13.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, APTARGROUP INC increased its bottom line by earning $2.86 versus $2.53 in the prior year. This year, the market expects an improvement in earnings ($3.00 versus $2.86).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Containers & Packaging industry. The net income increased by 9.6% when compared to the same quarter one year prior, going from $48.60 million to $53.25 million.
- The debt-to-equity ratio is somewhat low, currently at 0.72, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, ATR has a quick ratio of 2.11, which demonstrates the ability of the company to cover short-term liquidity needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Containers & Packaging industry and the overall market on the basis of return on equity, APTARGROUP INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full analysis from the report here: ATR
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.