5 Best Packaging Stocks to Buy Now

In this article, we discuss 5 best packaging stocks to buy now. If you want to read our detailed analysis of the packaging industry and its performance over the years, go directly to read 11 Best Packaging Stocks to Buy Now.

5. Avery Dennison Corporation (NYSE:AVY)

Number of Hedge Fund Holders: 30

Avery Dennison Corporation (NYSE:AVY) is an Ohio-based materials science and manufacturing company that specializes in labeling and packaging materials, as well as various solutions for industries such as retail, apparel, automotive, healthcare, and more. It is among one of the best packaging stocks to buy now.

In the first quarter of 2023, Avery Dennison Corporation (NYSE:AVY) posted an EPS of $1.70, which surpassed analysts’ estimates by $0.05. During the quarter, the company paid $114 million to shareholders through dividends and share repurchases. It currently pays a quarterly dividend of $0.81 per share for a dividend yield of 1.87%, as of July 4. The company has been growing its dividends for 12 years running.

At the end of Q1 2023, 30 hedge funds in Insider Monkey’s database reported having stakes in Avery Dennison Corporation (NYSE:AVY), up from 26 a quarter earlier. These stakes have a consolidated value of over $243.5 million.

4. Sealed Air Corporation (NYSE:SEE)

Number of Hedge Fund Holders: 32

Sealed Air Corporation (NYSE:SEE) is an American company that provides packaging solutions focused on food safety, product protection, and sustainability. During the first quarter of 2023, the company generated $52 million in operating cash flow, up from $48 million in the prior-year period. Its free cash flow for the quarter came in at $13 million.

Sealed Air Corporation (NYSE:SEE), one of the best packaging stocks, currently pays a quarterly dividend of $0.20 per share and has a dividend yield of 1.98%. During Q1 2023, the company returned $31 million to shareholders in dividends.

Sealed Air Corporation (NYSE:SEE) was a popular buy among elite funds in Q1 2023, as 32 hedge funds tracked by Insider Monkey owned stakes in the company, up significantly from 23 in the previous quarter. These stakes have a total value of nearly $210 million.

Vulcan Value Partners mentioned Sealed Air Corporation (NYSE:SEE) in its Q1 2023 investor letter. Here is what the firm has to say:

“Sealed Air Corporation (NYSE:SEE) is a global protective packaging company operating in the food and beverage, industrial, and e-commerce markets. The company sells both packaging equipment and consumable packaging. Sealed Air has a strong market position with leading technology and brands. In the food and beverage market, the Cryovac brand is the gold standard for packaging and shipping fresh, uncooked proteins. Food safety is critically important, and customers are willing to pay for quality and reliability. Additionally, switching costs are high and customer relationships are typically sticky and long term in nature. Sealed Air’s brands in e-commerce and industrial include Bubble Wrap and Instapax, and the competitive advantages in these markets are largely similar.”

3. WestRock Company (NYSE:WRK)

Number of Hedge Fund Holders: 35

WestRock Company (NYSE:WRK) is next on our list of the best packaging stocks.

At the end of the March quarter 2023, 35 hedge funds owned stakes in WestRock Company (NYSE:WRK), according to Insider Monkey’s database of 943 hedge funds. These stakes have a collective value of roughly $820 million. With over 12.6 million shares, Greenhaven Associates was the company’s leading stakeholder in Q1.

SouthernSun Asset Management, LLC mentioned WestRock Company (NYSE:WRK) in its Q1 2023 investor letter. Here is what the firm has to say:

“WestRock Company (NYSE:WRK), a leading provider of corrugated and consumer packaging in the U.S., reported fiscal first quarter results that were below expectations and was a top detractor for the quarter. Strong pricing drove 1% sales growth in the corrugated packaging segment and 7% growth in the consumer packaging segment, but sales in the global paper segment declined 17% in the quarter due to weak export demand for containerboard. Consolidated EBITDA was down 4% for the quarter, impacted by weakness in the global paper segment and economic downtime taken throughout the mill system. WestRock ended its first fiscal quarter with net debt to trailing 12-months EBITDA of 2.35x, slightly above its targeted range of 1.75-2.25x, driven primarily by the acquisition of the remaining interest in Grupo Gondi. While macroeconomic weakness continues to weigh on demand for packaging, we believe WestRock operates a resilient business model with exposure to a diverse range of end markets. The business has generated over $1 billion in free cash flow in each of the last seven years, and we believe they will exceed that level again during fiscal 2023. Management has demonstrated a commitment to improving returns on capital by shuttering older, inefficient mills, selling its uncoated recycled board mills, and increasing exposure to the growing Latin American market through its acquisition of Grupo Gondi. We believe that shareholders will benefit from these efforts over the long term.”

2. Crown Holdings, Inc. (NYSE:CCK)

Number of Hedge Fund Holders: 45

Crown Holdings, Inc. (NYSE:CCK) is a global manufacturer of metal packaging products for various industries. At the end of March, the company had over $403 million in cash and cash equivalents, up from $389 million in the prior-year period. It also pays a quarterly dividend of $0.24 per share and has a dividend yield of 1.09%, as of July 4.

At the end of Q1 2023, 45 hedge funds tracked by Insider Monkey reported having stakes in Crown Holdings, Inc. (NYSE:CCK), compared with 48 in the previous quarter. Their collective stake value of $1.38 billion.

1. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 51

3M Company (NYSE:MMM) is an American multinational conglomerate that also has a presence in the packaging industry and provides various packaging solutions and products. The company is a Dividend King with 65 years of dividend growth streak under its belt. It currently pays a quarterly dividend of $1.50 per share and has a dividend yield of 5.93%, as of July 4.

As of the close of Q1 2023, 51 hedge funds in Insider Monkey’s database reported having stakes in 3M Company (NYSE:MMM), compared with 52 in the previous quarter. The collective worth of these stakes is over $697.3 million.

You can also take a look at 12 Most Undervalued Retail Stocks to Buy and 15 Best Large-Cap Value Stocks To Buy

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