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Why Sonoco (SON) is a Top Value Stock for the Long-Term

Zacks Equity Research
·2-min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

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Sonoco (SON)

Incorporated in 1899, Hartsville, SC-based Sonoco Products is a leading provider of consumer packaging, industrial products, protective packaging and packaging supply chain services. The company manufactures paperboard, primarily from recycled materials, for both internal use and open market sale.

SON is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 8.8X for the current fiscal year compared to the Containers - Paper and Packaging industry's P/E of 10.1X. Additionally, SON has a PEG Ratio of 1.8 and a Price/Cash Flow ratio of 9.3X. Value investors should also note SON's Price/Sales ratio of 0.8X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.09 to $6.42 per share. SON has an average earnings surprise of 6.2%.

Investors should take the time to consider SON for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.


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Zacks Investment Research