Packaging company AMC was one of the rare winners yesterday rallying +1.2% and catching our eye in the process. The stock is fairly cheap trading on an estimated 14.4x valuation for 2022 while it also yields a sustainable 4.2%, however what really caught our eye was how the stock has started to follow the MM mantra for 2022:
AMC -3.54%: global packaging giant Amcor fell today after the release of their first half numbers. Revenue jumped 12%, nearly topping $US7b, largely driven by price increases which accounted for 11%. Net profit was only 3% higher than the same period last year as costs bit into margins. Higher labour and input costs as well as supply chain issues...
We have already touched on increasing defensives and cash through 2022 but what stocks to hold in respective sectors and the market as we alluded to earlier ultimately dictates portfolio performance and as we expect shorter and sharper cycles opportunities to buy & sell are likely to present themselves at regular times – not being active enough on the sell side was probably our largest portfolio detractor last year.
Amcor (AMC) +4.45%: Out with 1H results today which were decent plus importantly they increased their FY21 EPS guidance to 10-14% growth, up from 7-12%. The global packaging company is trading in a range and today’s update doesn’t get us excited, although clearly the trends remain positive.
Amcor PLC operates as a packaging company. The Company offers wide range of flexible and rigid packaging, specialty cartons, closures, and services for food, beverage, pharmaceutical, and medical sectors. Amcor serves customers worldwide.
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