Here's Why You Should Retain AptarGroup Stock in Your Portfolio Now

AptarGroup, Inc. ATR is poised to gain from its business transformation plan and improve organizational effectiveness. Innovative product launches and acquisitions will also fuel growth. Let us delve deeper and analyze the factors that make this stock worth holding on to at present.AptarGroup’s Focus on Business TransformationATR has been focused on business transformation plans to drive top-line growth, boost operational excellence, enhance its approach to innovation, and improve organizational effectiveness.The company has primarily been focused on transforming its Beauty segment, adding capabilities in Asia, implementing commercial strategies, reducing costs and capitalizing on fast-growing application fields. Its cost-control measures and pricing actions will help sustain margins in the upcoming quarters.ATR’s Segments Witness Healthy DemandThe Pharma segment is witnessing healthy demand for its proprietary dispensing devices used for nasal decongestants, eye care, cough and cold, and saline rinses, as well as allergic rhinitis, emergency medicines and depression therapies. Demand for elastomeric components used for biologics continues to be strong. The company anticipates its unique pharma medication delivery systems to continue to increase in 2024, maintaining its long-term core sales target of 7-11%. The Beauty segment is also seeing higher sales in prestige and mass fragrances, along with sales growth in skin care and color cosmetic solutions. A positive mix of pricing and volume growth will drive the segment’s revenues. The Beauty and Closures segments are expected to witness a recovery in the North America market this year.AptarGroup’s Innovative Product Launches & AcquisitionsATR is poised to gain from innovative product launches. It continues to be the preferred choice for renowned brands worldwide. In 2023, the Pharma segment had the highest number of product launches since 2018. The segment now boasts a solid pipeline. The momentum has continued in 2024. AptarGroup marked significant achievements in the third quarter of 2024.The company has been committed to expanding its business through acquisitions to expand the scope of technologies, geographic presence and product offerings. In October 2024, ATR acquired SipNose Nasal Delivery Systems' device technology assets. The acquisition expands Aptar Pharma's intellectual property and drives growth in intranasal delivery product development and research.Near-Term Concerns for ATR StockAptarGroup's Beauty segment continues to face softness in the China market and ongoing challenges in the prestige fragrance market, which have been impacting margins. If these trends persist, they will likely weigh on ATR's overall performance in 2024.AptarGroup has also been witnessing increased input costs, including utilities, metals, freight and labor. While the company maintains a normal pass-through of resin cost increases and has implemented price increases to offset other cost hikes, there is no margin on resin pass-through costs, which has led to an increase in the cost of sales as a percentage of sales. This will continue to impact its margins in the near term.AptarGroup Stock’s Price PerformanceATR shares have gained 28.4% in the past year compared with the industry’s growth of 15.4%. Image Source: Zacks Investment Research ATR Zacks Rank & Stocks to ConsiderAptarGroup currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the Industrial Products sector are Graham Corporation GHM, Federal Signal Corporation FSS and RBC Bearings Incorporated RBC. GHM sports a Zacks Rank #1 (Strong Buy), and FSS and RBC have a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.Graham delivered an average trailing four-quarter earnings surprise of 101.85%. The Zacks Consensus Estimate for GHM’s 2024 earnings is pinned at $1.03 per share, which indicates year-over-year growth of 145.2%. The company’s shares have gained 136.8% in a year.Federal Signal delivered an average trailing four-quarter earnings surprise of 11.8%. The Zacks Consensus Estimate for FSS’ 2024 earnings is pinned at $3.34 per share, which indicates year-over-year growth of 29.5%. The company’s shares have gained 40% in a year.The Zacks Consensus Estimate for RBC Bearings’ fiscal 2025 earnings is pegged at $9.80 per share. The company delivered a trailing four-quarter average earnings surprise of 2.5%. RBC’s shares have gained 37.5% in a year.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RBC Bearings Incorporated (RBC): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Federal Signal Corporation (FSS): Free Stock Analysis Report Graham Corporation (GHM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks