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.
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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.
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.
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