Our “Expert Spotlight” piece today brings you two top picks that senior Citigroup analyst Anthony Pettinari is betting on. Pettinari’s core focus is on the consumer goods sector, and he is optimistic about packaging companies Crown Holdings, Inc. (NYSE: CCK) and Ball Corporation (NYSE: BALL).
High inflation levels and an impending recession have not spared the consumer goods sector so far this year. Since the packaging industry is closely intertwined with this sector, it has seen harsh times as well. However, with the packaging industry expected to witness a CAGR of 2.94% between 2022 and 2027 and reach a value of $218.12 billion, according to a report by Mordor Intelligence, investment in companies such as Crown Holdings and Ball Corporation can turn out to be fruitful decisions.
Pettinari remains bullish on these two names, and his impressive track record bears testimony to his successful stock picking capabilities.
Pettinari’s Standing Among TipRanks Experts
According to the TipRanks Star Ranking System, Anthony Pettinari, an alumnus of the prestigious Columbia University, ranks # 246 out of 7,991 analysts in the TipRanks universe and # 324 out of 21,313 overall experts, including hedge fund managers, Wall Street analysts, corporate insiders, financial bloggers, and individual investors.
Pettinari’s success rate in picking stocks stands at 64%, whereas his average return per rating is an impressive 17.20%.
The analyst’s average returns relative to the S&P 500 and the benchmark sector stand at 4.30% and 3.40%, respectively.
Among his 429 ratings, 62% are Buys, 37.06% have a Hold rating, and 0.93% have a Sell rating.
Notably, according to TipRanks, Pettinari’s most profitable pick has been Lennar Corporation (LEN) between April 15, 2020 and April 15, 2021, generating an impressive return of 161.20%.
Now, let’s have a deeper look at his two top picks.
Pettinari Remains Bullish on Crown Holdings
Established in 1892, Crown Holdings is a specialty packaging company that makes metal beverage and food cans, metal aerosol containers, and metal closures. Presently, the company commands a market cap of $10.94 billion.
In its latest results for the second quarter, Crown Holding reported impressive numbers, with both revenue and earnings surpassing Street estimates. Revenues for the quarter came in at $3.51 billion, up 22.9% from the prior year. Yet, earnings per share (EPS) of $2.10 declined by 3.2% from the year-ago quarter.
Notably, the company is slated to report its third-quarter results on October 19, 2022.
Pettinari remains bullish on the stock. The analyst reiterated a Buy rating with a price target of $116, which implies an upside potential of 28.5% from current levels.
Meanwhile, the analyst enjoys a success rate of 73% and an average profit of 15.61% on the stock.
Overall, the consensus among analysts for Crown Holdings stock is a Strong Buy based on 13 Buys and two Holds. The CCK average price target of $123.85 implies an upside potential of 37.2% from current levels. Shares have declined 11.9% over the past year.
Pettinari is Still Optimistic about Ball Corporation
Founded in 1880, Ball Corporation is the world’s largest manufacturer of recyclable metal beverage and food containers. Further, the company has diverse business interests, including aerospace technology. The company’s current market cap stands at $18.02 billion.
The company’s latest results for the second quarter were mixed, with revenues rising but EPS declining from the year-ago quarter. Ball Corporation’s net sales for the quarter came in at $4.13 billion, which denotes a growth of 19.5% from the previous year. Yet, EPS declined by 4.7% from the year-ago quarter to $0.82.
The analyst has retained a Hold rating with a price target of $64, which implies an upside potential of 13.6% from current levels. Meanwhile, Pettinari enjoys a success rate of 88% and an average profit of 27.78% on the stock.
Overall, the consensus among analysts for Ball Corporation stock is a Hold based on three Buys, 11 Holds, and one Sell. The BALL average price target of $71.71 implies an upside potential of 27.2% from current levels. Shares have declined 34.9% over the past year.
Packaging Industry Can Overcome Headwinds
Presently, the packaging industry continues to face headwinds. However, as consumption patterns begin to improve, the packaging sector is also expected to grow. To that end, Anthony Pettinari’s top picks are two of the foremost players in the packaging industry, and by adding them to their portfolios, investors can stand to benefit.
Like Pettinari, the TipRanks Expert Center brings to you the picks and opinions of numerous hedge fund managers, Wall Street analysts, corporate insiders, financial bloggers, and individual investors whose guidance can allow investors to earn impressive returns.
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