Berry Global Group, Inc. BERY has been benefiting from strength across all its segments. The Consumer Packaging North America segment has been witnessing strength in its food, beverage and foodservice end markets, which has led to 10% year-over-year growth in its revenues in first-quarter fiscal 2025 (ended December 2024). Growth in emerging markets and share gains are aiding the company’s Consumer Packaging International segment. The segment’s organic volume increased 1% in the fiscal first quarter. The Flexibles segment’s revenues were up 1.8%, driven by continued recovery in the European industrial markets.

The company’s investments in the latest equipment technologies, advantaged film development and design for circularity are likely to enhance its competency in the long run. In April 2023, BERY completed the construction of a second manufacturing facility and Global Healthcare Center in Sira, Bangalore.

The facility enables Berry Global to increase the supply of patient-centered healthcare solutions (like ophthalmic, nasal pumps and injectable administrations) in India and throughout South Asia, thereby capitalizing on the growing opportunities across the healthcare markets in the region.

Berry Global utilizes its cash flow for acquiring businesses, paying out dividends and repurchasing shares. In October 2024, the company acquired CMG Plastics, a plastics injection molding company that is operated within the Consumer Packaging North America segment. Regarding rewards to shareholders, Berry Global paid dividends worth $36 million in the first three months of fiscal 2025. Also, in October 2024, it hiked its dividend by 12.9% to 31 cents per share (annually: $1.24).

BERY’s Price Performance

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In the past six months, the Zacks Rank #3 (Hold) company has gained 5.9% against the industry’s 4.3% decline.

However, BERY has been dealing with rising operating costs and expenses. In the first quarter of fiscal 2025, its cost of sales recorded a year-over-year increase of 1.4% due to rising raw material costs. In the same period, the company’s selling and administrative expenses increased 8.3% year over year.

BERY’s high debt level remains a concern for its profitability. Despite its efforts to reduce debt leverage, its current and long-term debt remained high at $7.4 billion at the end of the fiscal first quarter.

Stocks to Consider

Some better-ranked companies are discussed below:

Sonoco SON presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SON delivered a trailing four-quarter earnings surprise of 2%, on average. The Zacks Consensus Estimate for Sonoco’s 2025 earnings has increased 8.6% in the past 60 days.

RBC Bearings Incorporated RBC presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 5%, on average. The consensus estimate for RBC’s fiscal 2025 (ending March 2025) earnings has increased 1.2% in the past 60 days.

Applied Industrial Technologies, Inc. AIT presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 5.3%.

The Zacks Consensus Estimate for AIT’s fiscal 2025 (ending June 2025) earnings has improved 1.4% in the past 60 days.

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Sonoco Products Company (SON) : Free Stock Analysis Report

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Berry Global Group, Inc. (BERY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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