10 Best Plastics and Rubber Stocks to Buy According to Analysts

6. AptarGroup Inc. (NYSE:ATR)

Upside Potential as of January 13: 26.71%

One of the Best Plastics Stocks, AptarGroup, Inc. (NYSE:ATR) is widely recognized for its fragrance, cosmetics, and personal care products, as well as its line of patent-protected specialty pumps, valves, and dispensing closures that are needed by the pharmaceutical, household, industrial, and food industries.

AptarGroup, Inc. (NYSE:ATR) is a global company, with around half of its revenue coming from Europe and 33% from North America. Since 2016, the business has expanded its reach and diversified its portfolio by around two dozen collaborations, investments, and acquisitions.

AptarGroup, Inc. (NYSE:ATR) recently reported impressive third-quarter earnings, with a net income of $100 million, up 19% YoY. The Pharma segment reported sales growth of 8% and core sales growth of 7% due to the ongoing demand for proprietary drug delivery systems, while the Aptar Closures segment witnessed a 3% increase in sales YoY. The segment-wise performance was strong. On the other hand, despite growth in the personal care and home care markets, the Aptar Beauty segment’s reported sales fell 7%.

In Q3 of 2024, AptarGroup, Inc. (NYSE:ATR) was listed as one of the 2024 World’s Best Companies by Time, won a contract for ActivShield sterilization technology from the US government, and launched many new products.

Baird boosted the price target on AptarGroup, Inc. (NYSE:ATR) to $185 from $170 and has an Outperform rating on the stock. The company claimed that AptarGroup is in a strong position to provide a high-quality DD earnings growth algorithm, driven by the expansion of the pharmaceutical industry, cost-out initiatives in the packaging industry that should raise operating leverage once volumes eventually stabilize, and the flexibility of capital allocation, including share buybacks.

The average price objective of $195.86 is set by the four analysts who have 12-month price projections for AptarGroup stock; the low and high estimates are $180 and $215, respectively. Compared to the current stock price of $154.61, the average goal forecasts a 26.71% growth.