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Amcor plc (AMCR), headquartered in Zurich, Switzerland, develops and produces packaging for food, beverage, pharmaceutical, medical, home and personal care, and other products. Valued at $14.55 billion by market cap, the company, through its flexible and rigid packaging, specialty cartons, closures, and services, helps leading companies protect their products and differentiate their brands.
Shares of this leading packaging company have underperformed the broader market considerably over the past year. AMCR has declined 2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.6%. But in 2024, the gap narrowed, with AMCR stock rising 4.5%, while the SPX is up 11.3% on a YTD basis.
Narrowing the focus, AMCR’s underperformance looks less pronounced compared to the S&P 500 Materials Sector SPDR (XLB). The exchange-traded fund has gained about 16.8% over the past year. The ETF’s 6.8% returns on a YTD basis outshine the stock’s gains over the same time frame.
On Apr. 30, AMCR reported its Q3 results, with net sales declining 7% year over year to $3.41 billion. Its adjusted EPS came in at 17.8 cents, representing an increase of 1.7% year over year. The stock gained over 9% in the session following the day the results were released.
For the current fiscal year, ending in June, analysts expect AMCR to report an EPS decline of 4.1% to $0.70 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the eight analysts covering AMCR stock, the consensus rating is a “Hold.” That’s based on one “Strong Buy” rating, five “Holds,” one “Moderate Sell,” and one “Strong Sell.”
This configuration has been consistent over the past three months.
Recently, JP Morgan Chase & Co. maintained an “Overweight” rating on AMCR stock and raised the price target from $9.9 to $10, implying a potential marginal downside from current levels.
The mean price target of $9.78 represents a 3% downside to AMCR’s current price levels. The Street-high price target of $10.20 suggests a marginal upside potential.
On the date of publication, Dipanjan Banchur 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.
