On Thursday, Berry Global Group Inc. (NYSE:BERY) shares nosedived more than 6% despite announcing better-than-expected fiscal fourth-quarter results. The company reported its most recent quarterly results before markets opened, beating the consensus for analysts expectations on revenue and earnings.
Berry posted fiscal Q4 non-GAAP earnings per share of $1.55, beating the average for analyst expectations of $1.52. In addition, its GAAP EPS of $1.64 outperformed the consensus Street estimate of $1.41, while revenue for the quarter increased by 21.6% from the same quarter in 2020 to $3.66 billion, surpassing expectations by $200 million.
Berry Global shares are now up 17.45% this year following Thursday’s pullback, thus underperforming the S&P 500 index, which is up more than 27%.
Is Berry Undervalued?
From an investment perspective, Berry Global shares trade at compelling trailing 12-month and forward P/E ratios of 12.87 and 10.40, respectively. Therefore, the stock could be an exciting option for value investors.
In addition, analysts expect its earnings per share to grow by nearly 38% this year before rising at an average annual rate of 11.53% over the next five years.
Therefore, BERY could also gain the attention of growth investors.
Source – TradingView
Technically, Berry Global shares seem to have recently plunged to complete a downward breakout from an ascending channel formation. However, the stock is yet to retest the 100-day moving average, thereby leaving room for more downward movement.
Therefore, with shares far from reaching oversold conditions, investors could target extended declines at about $63.40, or lower at $60.62, while $67.87 and $70.44 are resistance levels.
BERY still looks like a technical sell
In summary, although Thursday’s pullback pushed Berry Globa’s valuation multiples lower, the stock is yet to reach oversold conditions, thus giving profit-takers an extended period to cash out.
Therefore, with the company’s solid FQ4 results failing to rally the stock, it may not be time to buy yet.
The post Berry Global stock prediction as shares plunge despite solid Q4 results appeared first on Invezz.
