Sonoco Products Reminiscent of a Low-Risk Warren Buffet Stock

Sonoco Products will report earnings tomorrow, February 11

Feb 10, 2021 at 10:07 AM
facebook twitter linkedin

Sonoco Products Company (SON) (NYSE:SON) is a U.S.-based packaging company. Sonoco provides consumer packaging, industrial products, protective packaging, and packaging supply chain services and is the world's largest producer of composite cans, tubes, and cores.

Sonoco will step up to the earnings plate tomorrow, February 11 before the market opens. Wall Street consensus projects SON to report an earnings per share (EPS) of $0.77 in its report tomorrow. The stock has a history of muted post-earnings reaction, averaging a 1.8% move in the last eight quarters, regardless of direction. 

On the charts, Sonoco stock is a chip-shot from its Dec. 14 annual high of $62.13. Last seen trading at $62.07, the shares bounced from their 80-day moving average earlier in 2021. The equity is ripe for a shift in analyst attention too, considering seven of nine in coverage maintain tepid "hold" ratings.

SON Stock Chart

Overall, it doesn’t get much more secure than Sonoco stock for low-risk investments. The company has paid dividends to its investors since 1972, even managing to increase its payments regularly since then. SON has a forward dividend of $1.72 and a dividend yield of 2.84%. Sonoco stock’s current price-earnings ratio sits at 23.25. However, its forward price-earnings ratio is much more attractive, coming in at 16.45. Additionally, SON has a history of solid revenue and net income growth in over long-term periods, making it a low-risk option for potential investors.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners