Amcor plc (AMCR): A Bull Case Theory
An old-fashioned food production line with employees packaging an assortment of products.
The recent merger of Amcor and Berry Global creates a market leader in plastic packaging, offering an attractive investment opportunity driven by synergy realization and steady growth. Amcor, an Australian company with strong global exposure, and Berry together will nearly double Amcor's revenues and solidify its leadership in flexible and rigid packaging. The combined entity will benefit from significant cost and scale advantages, as it becomes 3-4 times larger than its next competitor.
Flexible packaging, used for consumer staples like baby food and snack bags, will make up 60% of revenue, while rigid packaging, such as shampoo bottles and peanut butter jars, contributes the remaining 40%. Despite sustainability concerns about plastics, the products made by Amcor and Berry are highly specialized, harder to substitute, and essential for food safety and medical use. Moreover, Amcor leads the industry in R&D spending, driving innovation toward more recyclable and efficient solutions.
Historically resilient through economic cycles, both companies demonstrated volume stability during the COVID pandemic and the Global Financial Crisis, reinforcing their defensive end-market exposure. While recent packaging volumes have been volatile, likely due to post-pandemic destocking, organic EBITDA growth has remained positive, supported by product mix shifts and cost controls.
The merged company is expected to grow EPS by 15% annually through 2028, with nearly half of this growth coming from well-supported cost synergies. Amcor's proven acquisition track record (Alcan, Bemis) and Berry's success with RPC bolster confidence in synergy execution. Trading at just 11.5x forward EPS, with intrinsic value seen 50% higher, the stock offers an appealing risk/reward driven by scale, resilience, and strong synergy catalysts.
Previously we covered a bullish thesis on Avery Dennison Corporation (AVY) by Serhio MaxDividends in May 2025, which highlighted the company's leadership in labeling and materials science and its strong dividend growth. The company's stock price has appreciated approximately by 0.35% since our coverage. Singletrack shares a similar view but emphasizes on Amcor's packaging scale and synergy-driven growth post its Berry Global merger.
Amcor plc is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held AMCR at the end of the first quarter which was 29 in the previous quarter. While we acknowledge the potential of AMCR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Steve Jobs' first Silicon Valley boss turned down an offer to buy a third of Apple for $50,000—today, his share would be worth nearly $1 trillion
Atari cofounder Nolan Bushnell turned down his former employee, the late Steve Jobs, when he was offered to buy a third of Apple for $50,000 in the 1970s. With the iPhone titan now standing at $3.1 trillion, the video gaming pioneer missed out on making $1 trillion from his relatively small investment. But he isn't troubling himself with regret, reasoning he might not be as happy—and Apple may not have been as successful—if he accepted the deal. Many people may be kicking themselves for not buying Bitcoin or investing in Nvidia stock sooner—but few will have missed out on a bigger deal than Atari cofounder Nolan Bushnell, the first Silicon Valley boss of the late Steve Jobs. A young Jobs offered the gaming mogul an eye-popping deal: buy a third of Apple for just $50,000. What might come as a shock to many is that Bushnell turned it down. Apple has since grown into a $3.1 billion sensation with over a billion iPhones sitting in people's back pockets, and over 100 million Mac users worldwide—and if Bushnell had taken the deal, his cut would have made him $1 trillion today. But Bushnell isn't crying over the missed opportunity Bushnell first witnessed Jobs' potential as a businessman in the 1970s, when the college dropout joined Atari as a technician and games designer before moving into entrepreneurship. Jobs was an essential engineer 'solving problems in the field' at Atari, Bushnell recalled, but his leadership mentality also meant some tension at the office. The Atari cofounder strategically employed Jobs during nightshifts, knowing that Wozniak would also join and help out on projects like the brick-breaking game 'Breakout.' But Jobs would also barge into his office to tell Bushnell that the other employees weren't good at soldering, offering to instruct them. Bushnell recognized that Jobs was a genius—albiet, a complicated one. 'He was a difficult person,' Bushnell told ABC News in 2015. 'He was very smart. Often he was the smartest person in the room, and he would tell everybody that. It's generally not a good social dynamic.' But years later, the tech pioneer isn't quietly simmering over his choice to reject the offer. 'I could have owned a third of Apple computer for $50,000, and I turned it down,' Bushnell said in the interview. 'I've got a wonderful family, I've got a great wife, my life is wonderful. I'm not sure that if I had been uber, uber, uber rich that I'd have had all of that.' In fact, Bushnell even thinks Apple may not have been so successful if he had taken the deal. And his potential payout may not have soared to that trillion-dollar height. 'I'm still an Apple fan and you know I think that hindsight is 20/20,' he told Tech Radar in 2013, when asked about his decision to say no. 'I can go through a thread very easily which, by me turning Steve down led to me introducing him to Don Valentine, and he introduced him to Mike Markkula who is as responsible for Apple's success as Steve Woz[niak] and Jobs.' He's not the first tech boss to have missed out on billions Bushnell isn't the only one who missed out on critical business opportunities that would launch them into billionaire status—there are even others who blew it on big deals with Apple. Ronald Wayne, the lesser-known third Apple cofounder, was also working at the electronics company Atari when he stepped up as Jobs' friend to help convince Wozniak of formalizing Apple's launch. Wayne even typed up the contract, penning that he would receive a 10% share in the tech company, while Jobs and Wozniak would each be awarded a 45% stake. However, less than two weeks after drafting up the document, Wayne sold his stake for just $800, also reaping $1,500 to forgo any claim to the company. Looking back, it's a massive misstep as his 10% share could now be worth between $75 billion and $300 billion today. His wasted opportunity isn't as stark as Bushnell's—and the decision mainly came from a desire to have financial stability in his life. 'Jobs and Woz didn't have two nickels to rub together,' Wayne told Business Insider in 2017. 'I, on the other hand, had a house, and a car, and a bank account—which meant that I was on the hook if that thing blew up.' YouTube's cofounders, Chad Hurley, Steven Chen and Jawed Karim could also be sitting in a sizable nest egg today if they didn't sell their company so early. The YouTube creators sold their popular video platform to Google for $1.65 billion in fall 2006—each receiving millions of dollars worth of stock. Hurley got company shares worth around $345 million, according to The New York Times, while Chen accepted about $326 million worth. Karim, who left the business early to go back to school, got $64 million of shares. They were ecstatic about the deal in the beginning, but the buyer's remorse would potentially creep up less than 20 years later. Today, YouTube is valued at $550 billion—333 times higher than its market cap from nearly two decades prior, adjusted to inflation. If Hurley and Chen accepted the same stock deal today that they did in 2006, each could have more than $100 billion in their bank accounts. This story was originally featured on Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
HNI (HNI) Could Be a Great Choice
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. Based in Muscatine, HNI (HNI) is in the Business Services sector, and so far this year, shares have seen a price change of -12.11%. The maker of office furniture and fireplaces is paying out a dividend of $0.34 per share at the moment, with a dividend yield of 3.07% compared to the Business - Office Products industry's yield of 2.52% and the S&P 500's yield of 1.48%. Looking at dividend growth, the company's current annualized dividend of $1.36 is up 3.8% from last year. Over the last 5 years, HNI has increased its dividend 4 times on a year-over-year basis for an average annual increase of 2.00%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. HNI's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend. HNI is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $3.55 per share, with earnings expected to increase 16.01% from the year ago period. Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout. High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that HNI is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HNI Corporation (HNI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
an hour ago
- Yahoo
Algeria Close to Signing Shale Gas Deals with Exxon and Chevron
Algeria nears the finalization of agreements with U.S. supermajors Exxon and Chevron to explore and invest in its shale gas resources as the North African country bets big on boosting its gas pipeline and LNG exports, the head of the Algerian energy regulator told Bloomberg. 'The technical aspects have more or less been agreed upon, but the commercial alignment is still under negotiation and will soon be finalized,' Samir Bekhti, chairman of energy regulator Alnaft, told the newswire in an interview published on Friday. Algeria would send 'a strong signal' for its resource potential by attracting the U.S. supermajors, the official said. Tapping shale gas would be a first for Algeria, the North African OPEC producer which is looking to raise its production and exports as it looks to remain a key provider of gas to Europe. Algeria holds huge conventional natural gas reserves, and it is also estimated to have the third–largest shale gas reserves in the world after China and Argentina. Chevron commented on a potential deal with a statement to Bloomberg, saying that 'we are excited by the prospective synergies and relationship we could create in Algeria,' considering the company's experience and capabilities. Most of Algeria's gas exports are heading to Europe, which is increasingly betting on Africa to import large volumes of pipeline gas and LNG to replace pipeline gas supply from Russia, which was Europe's top gas supplier before the Russian invasion of Ukraine. Italy's energy major, Eni, has been particularly active in securing more natural gas supply for Europe from Africa and has fast-tracked projects in Africa to meet Europe's gas demand in the absence of Russian pipeline deliveries. Moreover, the UK's Grain LNG, Europe's largest liquefied natural gas terminal, signed last year a ten-year agreement that will extend the long-term storage and redelivery capacity of Algerian energy firm Sonatrach at the Grain LNG terminal from January 2029. By Tsvetana Paraskova for More Top Reads From this article on Sign in to access your portfolio
