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

Zacks
21 Feb

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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 boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #1 (Strong Buy) rating. Shares of Sonoco are trading at a forward earnings multiple of 7.6X, as well as a PEG Ratio of 0.8, a Price/Cash Flow ratio of 5.7X, and a Price/Sales ratio of 0.7X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.31 to $6.11 per share. SON has an average earnings surprise of 2%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding SON to their portfolios.

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Sonoco Products Company (SON) : Free Stock Analysis Report

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Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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