Bemis' (BMS) Stock Up 13% In 6 Months: Can It Gain Further?
Zacks Investment Research | Jan 14, 2019 05:45AM ET
Bemis Company, Inc. (NYSE:BMS) is riding high on impressive earnings surprise history, focus on Agility plan, as well as expansion of business. Bemis' shares have outperformed its industry with respect to price performance over the past six months. The stock has gained around 13%, while the industry has recorded loss of 9%
What’s Driving Bemis?
Bemis’ initiatives to improve cost structure through the Agility plan will help fix, strengthen, and grow its business. The plan includes optimizing manufacturing capacity, consolidating office space, and reducing SG&A, as well as other costs.
It also involves the simplification of product portfolio and organizational structure, rebalancing R&D efforts, along with pursuing targeted areas of growth in the North American business. Bemis expects to realize roughly $35 million of savings from the plan.
Bemis remains focused on improving its operating performance and expansion of business. During 2018, Bemis hired new sales representatives who are encouraged to pursue and win new business targets. The company has established core specific offerings by leveraging its existing innovative product portfolio and completed customer account reviews to focus on sales efforts.
Solid Zacks Rank, Score Combination
Bemis carries a Zacks Rank #2 (Buy), at present. It has a Zacks Investment Research
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