Sonoco Products has returned 30% year to date, beating the Nasdaq's 10.3% and the S&P 500's 8.5%. The packaging company offers a 3.78% dividend yield and has raised its dividend for 43 consecutive years. Its recent earnings rose 26% to $0.68 per share despite a 2% sales decline, driven by a cost-cutting plan targeting $32 million in savings this year and up to $200 million over three years. Sonoco is shifting toward higher-margin consumer packaging, which now accounts for 67% of sales, up from 42% in 2020. The stock trades at 9 times forward earnings with a median analyst price target of $63, implying 12% upside.
Sonoco Products CompanyEarnings rose 26% despite sales decline, cost-cutting plan, and shift to higher-margin consumer packaging
NVIDIA Corporation