Trade-Ideas: AptarGroup (ATR) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified AptarGroup ( ATR) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified AptarGroup as such a stock due to the following factors:

  • ATR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.6 million.
  • ATR has traded 106,718 shares today.
  • ATR is trading at a new lifetime high.

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More details on ATR:

AptarGroup, Inc. engages in the design, development, manufacture, and sale of consumer product dispensing systems in North America, Europe, Asia, and Latin America. The company operates in three segments: Beauty + Home, Pharma, and Food + Beverage. The stock currently has a dividend yield of 1.5%. ATR has a PE ratio of 26.6. Currently there are 2 analysts that rate AptarGroup a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for AptarGroup has been 206,200 shares per day over the past 30 days. AptarGroup has a market cap of $4.4 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.83 and a short float of 2.9% with 10.99 days to cover. Shares are up 40% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates AptarGroup as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • ATR's revenue growth has slightly outpaced the industry average of 3.0%. Since the same quarter one year prior, revenues slightly increased by 5.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ATR's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.43, which illustrates the ability to avoid short-term cash problems.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 33.27% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • APTARGROUP INC has improved earnings per share by 8.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, APTARGROUP INC reported lower earnings of $2.39 versus $2.67 in the prior year. This year, the market expects an improvement in earnings ($2.76 versus $2.39).
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Containers & Packaging industry average. The net income increased by 7.4% when compared to the same quarter one year prior, going from $42.13 million to $45.26 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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