With a market cap of $13.7 billion, Amcor plc (AMCR) is a global leader in responsible packaging solutions, serving industries such as food, beverage, pharmaceutical, and personal care. Based in Zurich, Switzerland, the company operates across developed and emerging markets, leveraging its unique combination of scale, geographic reach, and capabilities.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Amcor fits this criterion perfectly. Amcor’s two primary segments, Flexibles and Rigid Packaging, offer a diverse range of products, including flexible films, rigid containers, and specialty closures. Committed to sustainability, Amcor focuses on creating lightweight, recyclable, and reusable packaging to support its customers and enhance brand differentiation.
However, the packaging company has fallen 17.8% from its 52-week high of $11.48, recorded on Sept. 27. Amcor shares have declined 16.8% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) 8.8% gain during the same period.
In the long term, AMCR stock has dipped 3.8% over the past six months, lagging behind NASX’s 10.4% increase over the same period. Also, AMCR has dropped 2.9% over the past 52 weeks, compared to NASX’s 30.6% gains.
AMCR has traded below its 50-day moving average since late October. The stock has also fallen below its 200-day moving average since early December.
Despite meeting Q1 adjusted EPS expectations of $0.16, shares of Amcor dropped 7.8% following its Q1 earnings release due to weaker-than-expected revenue of $3.4 billion. The revenue shortfall was primarily attributed to lower pass-through costs and unfavorable foreign exchange impacts. The Rigid Packaging segment underperformed significantly, with an 8.5% revenue decline and a 4% drop in volume, both exceeding analysts’ downside projections. Furthermore, rising SG&A expenses and a sharp increase in net debt highlighted potential cost pressures and financial risks, intensifying investor concerns.
In contrast, rival Berry Global Group, Inc. (BERY) has outpaced AMCR over the past six months, gaining 10.6%. Nevertheless, over the past 52 weeks, Berry Global shares have declined 4.2%, which is more pronounced than AMCR’s decline.
Despite AMCR’s underperformance, analysts remain moderately optimistic about its prospects. Among the 10 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $11.22.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart
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