10 Best Packaging Stocks to Buy According to Analysts

1. O-I Glass, Inc. (NYSE:OI)

Average Upside Potential: 43.50%

Number of Hedge Fund Holders: 27

O-I Glass, Inc. (NYSE:OI) serves as a global leader in glass packaging. The firm is one of the producers of the most sustainable packaging, the glass container. It was founded by the inventor of the automatic bottle-making machine, Michael J. Owens. The firm’s vision revolves around becoming the most innovative, sustainable, and chosen supplier of brand-building packaging solutions.

OI has innovated and transformed how glass packaging is made and sold for over 100 years. It serves some of the most trusted brands such as Nestlé, Unilever, Coca-Cola, PepsiCo, and Kraft Heinz among others. The firm boasts a privileged footprint across the Americas and the EU, with deep manufacturing and technical capabilities. Furthermore, long-term megatrends tend to favor glass which remains well-positioned to win in the new green economy. Glass is the preferred choice for premium and health-oriented products.

The third quarter performance of O-I Glass, Inc. (NYSE:OI) was not like the strong prior-year quarter. The firm believes that its 2024 performance doesn’t reflect what it can potentially deliver while results are expected to improve in 2025 and beyond for which the Fit to Win program is in place. The first phase of O-I’s Fit to Win initiative is being implemented and is expected to drive at least $300 million of annualized savings by 2027. OI intends to reduce central operating costs, shift accountability to local markets, as well as eliminate unprofitable and redundant capacity to increase network utilization and drive productivity.

In conclusion, the firm expects a solid recovery in 2025 driven by its Fit to Win initiative benefits. Apart from the increased competitiveness expected as a result of this program, the firm has strong customer relationships which depict its service-level capabilities as well as a bright future for Glass to benefit from. Thus, O-I Glass, Inc. (NYSE:OI) ranks among the best packaging stocks to buy according to analysts with its average upside potential of 43.50%.

While we acknowledge the potential of OI as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than OI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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