(SON) Sonoco Products - Ratings and Ratios

Sonoco Products Company (NYSE:SON) is a global leader in the design, development, manufacture, and sale of sustainable and engineered packaging solutions. With operations spanning the United States, Europe, Canada, the Asia Pacific, and other international markets, the company serves a diverse range of industries, including paper, textile, film, food, packaging, construction, and wire and cable. Founded in 1899 and headquartered in Hartsville, South Carolina, Sonoco has established itself as a pioneer in innovative packaging materials and solutions.

The company operates through two primary segments: Consumer Packaging and Industrial Paper Packaging. The Consumer Packaging segment specializes in producing round and shaped rigid paper products, steel and plastic containers, and metal and peelable membrane ends, closures, and components. The Industrial Paper Packaging segment focuses on manufacturing paperboard tubes, cones, and cores, as well as paper-based protective packaging products and uncoated recycled paperboards. Additionally, Sonoco offers a wide array of packaging materials, including plastic, paper, foam, and specialty materials, tailored to meet the specific needs of its customers.

From a technical perspective, Sonocos stock (NYSE:SON) is currently trading at $46.19, with a 20-day average volume of 675,724 shares. The stocks short-term trend, indicated by the SMA 20 ($44.63), suggests a bullish crossover above the SMA 50 ($45.90). However, the SMA 200 ($49.23) indicates a broader downtrend. The ATR of 1.43 reflects moderate volatility, suggesting price swings of approximately $1.43 over a 20-day period.

Fundamentally, Sonocos market capitalization stands at $4.284 billion, with a price-to-earnings (P/E) ratio of 63.88, which is elevated compared to historical averages. The forward P/E of 7.32 signals expectations of significant earnings growth. The price-to-book (P/B) ratio of 1.89 suggests the stock is trading at a modest premium to its book value. The price-to-sales (P/S) ratio of 0.81 indicates undervaluation relative to revenue, while the return on equity (RoE) of 7.17% reflects moderate profitability.

Over the next three months, Sonocos stock is expected to consolidate within a range of $44 to $48, driven by the convergence of the SMA 20 and SMA 50. The stock may face resistance at the SMA 200 level of $49.23. The forward P/E of 7.32 and the low P/S ratio of 0.81 suggest potential upside as earnings growth materializes. However, the elevated current P/E of 63.88 and the modest RoE of 7.17% may temper near-term enthusiasm. Investors should monitor earnings reports and industry trends for further clarity.