Berry Story

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BERY -- USA Stock  

USD 54.83  1.24  2.31%

Berry Global Group is scheduled to announce its earnings today. The next earnings report is expected on the 29th of January 2021. The stock is in a buyout trend. As many retail investors are getting excited about consumer cyclical space, it is fair to break down Berry Global Group outlook under the current economic conditions. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over two weeks ago
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What is December outlook for Berry Global (NYSE:BERY)?
Berry Global has performance score of 1 on a scale of 0 to 100. The firm shows a Beta (market volatility) of -0.0559, which signifies not very significant fluctuations relative to the market. Let's try to break down what Berry's beta means in this case. As returns on the market increase, returns on owning Berry Global are expected to decrease at a much lower rate. During the bear market, Berry Global is likely to outperform the market. Although it is extremely important to respect Berry Global Group historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Berry Global Group technical indicators, you can presently evaluate if the expected return of 0.0411% will be sustainable into the future. Berry Global Group right now shows a risk of 1.74%. Please confirm Berry Global Group value at risk, as well as the relationship between the kurtosis and market facilitation index to decide if Berry Global Group will be following its price patterns.
What is the right price you would pay to acquire a share of Berry Global? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Berry Global Group this year

Annual and quarterly reports issued by Berry Global Group are formal financial statements that are published yearly and quarterly and sent to Berry stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Berry Global often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Berry utilizes its cash?

To perform a cash flow analysis of Berry Global, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Berry Global is receiving and how much cash it distributes out in a given period. The Berry Global cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Berry Global Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Berry Global reported Net Cash Flow from Operations of 1.53 Billion in 2019

Acquisition by Rahman Jill A of 5000 shares of Berry Global subject to Rule 16b-3

Legal trades by Berry Global insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Berry insider trading alert for grant of director stock option (right to buy) by Rahman Jill A, the corporate stakeholder, on 24th of November 2020. This event was filed by Berry Global Group Inc with SEC on 2020-11-24. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Details

Earning per share calculations of the firm is based on official Zacks consensus of 6 analysts regarding Berry Global's future annual earnings. Given the historical accuracy of 90.27%, the future earnings per share of the company is estimated to be 4.51 with the lowest and highest values of 4.44 and 4.64, respectively. Please note that this consensus of annual earnings estimates for Berry Global Group is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Berry a risky opportunity?

Let's check the volatility. Berry is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Berry (NYSE:BERY) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Berry Global stock makes you a part-owner of that company.

Berry Global Group Current Consensus

Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Berry Global Group. The Berry consensus assessment is calculated by taking the average estimates from all of the analysts covering Berry Global

Strong Buy
8
Buy
1
Hold
3
Strong Buy866.67
Buy18.33
Hold325.0
Sell00.0
Strong Sell00.0

How will Berry investors react to the next slide?

Current total risk alpha is at -0.16. Berry Global Group has relatively low volatility with skewness of 0.0 and kurtosis of 0.27. However, we advise all investors to independently investigate Berry Global Group to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

When is the right time to buy or sell Berry Global Group? Buying stocks such as Berry Global isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Berry as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Berry Global.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Berry Global Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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