Saturday, January 2, 2021 4:30 AM EST
The company also makes lids, pull tabs, and dispensing systems for a wide range of products like mouthwash, shampoos, conditioners, hand creams, lotions, and liquid soap.
It is not the most exciting business in the world, but it does generate a lot of cash every year. Silgan has been growing the free cash flow by almost 20% annually for the past five years. With a free cash flow multiple of just 10, management success is clearly not priced into the stock at current prices.
Wall Street has been underestimating the company all year as SLGN has now posted three consecutive positive earnings surprises. Analysts have also been scrambling to raise their earnings estimates and price targets for Silgan Holdings' shares.
That is going to attract the attention of the big funds whose buying power can push this stock a lot higher in the new year.
Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...
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