"Sonoco Products ( NYSE: SON) shares reached a 52-week high of $57.83 this week after strong 2025 results and 2026 guidance. That marks a 30% year-to-date surge that has far outpaced the S&P 500's fractional gain. The packaging company's rally accelerated following the February 17 earnings. With the stock at 52-week highs and technical indicators flashing warning signs, investors face the critical question of whether this momentum is sustainable or the valuation catch-up has run its course."
"The December 2024 acquisition of Eviosys drove Consumer Packaging revenue up 62.1% to $1.14 billion, delivering record quarterly results. Meanwhile, management reduced net debt by $2.7 billion during 2025, lowering the leverage ratio to approximately 3.0x. CEO Howard Coker emphasized the strategic shift: "We substantially concluded our portfolio transformation following the successful divestiture of ThermoSafe and further simplified our Consumer Packaging segment by consolidating our global Metal Packaging and Rigid Paper Containers businesses into a single integrated structure.""
Sonoco achieved a 52-week high and a 30% year-to-date gain after strong 2025 results and 2026 guidance. Fourth-quarter adjusted EPS of $1.05 topped consensus and adjusted operating profit rose 47.1% year over year, reflecting margin expansion. The Eviosys acquisition increased Consumer Packaging revenue 62.1% to $1.14 billion and management reduced net debt by $2.7 billion, cutting leverage to about 3.0x. Guidance targets adjusted EPS of $5.80 to $6.20, a roughly 20% improvement excluding divestitures. The stock trades near a 9x forward P/E with a 4.1% dividend yield, while technical indicators suggest potential overbought conditions.
Read at 24/7 Wall St.
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