On January 6, 2026, Wells Fargo analyst Gabe Hajde assigned an Equal-Weight rating to Sonoco Products Company (SON), emphasizing a price target of $52 for the stock, which is currently priced at $45.64. This outlook indicates a potential upside for investors contemplating their stake in Sonoco, presenting an opportunity for moderate gain without significant risk escalation.
Market Price Action
In the wake of the Wells Fargo rating update, SON exhibited a slight uptick of $0.44, translating to an increase of approximately 0.98%. The stock’s recent trading behavior has been marked by intriguing fluctuations against a backdrop of wider market conditions. Currently, SON’s market capitalization stands at approximately $4.54 billion, with a notable beta of 0.539, suggesting lower volatility in comparison to the broader market. Over the past year, SON has seen dramatic shifts, with a 52-week low of $18.09 and a high of $54.52, suggesting potential trading opportunities for risk-averse investors. Despite a higher average volume of trading at 1,194,233 shares, last week saw a dip into 177,752, indicating a possible pullback or consolidation phase.
Short- and Long-Term Performance
Examining SON’s performance metrics reveals dynamic movement across varying timeframes. Over the past 30 days, the stock has yielded a robust return of 11.1%. Conversely, the quarterly performance has shown a more tempered increase of 5.94%. On a yearly basis, the stock has enjoyed significant appreciation, although the exact percentage is currently under review.
Despite the positive returns, volatility metrics indicate fluctuations — with weekly volatility at 1.66% and monthly volatility at 1.7%. The average volume over the last ten days was pegged at around 767,118 shares, compared to a three-month average of 1,154,309, further emphasizing recent investor enthusiasm that is not yet fully reflected in the trading volume.
Earnings and Financials
Sonoco’s latest earnings report illustrated a slight outperformance, with an actual earnings per share (EPS) of $1.92 versus an estimated $1.91, yielding a surprise factor of 0.52%. This marks a noteworthy contrast to the previous quarter, where SON posted an actual EPS of $1.37 against an expectation of $1.44, resulting in a negative surprise of roughly 4.86%. This improvement showcases the company’s ability to manage costs and generate higher profitability, aligning with the overall positive sentiment reflected in the recent price action and analyst upgrades.
Analyst Consensus View
The consensus from analysts on SON is cautiously optimistic. Following Hajde’s recent evaluation, the stock has garnered a total of seven ratings: six rated as Buy and one as Hold, with no Sell ratings reported. The average price target stands at $55, with a high of $60 and a low of $50, reinforcing the value proposition for potential investors. The predominance of bullish positions suggests confidence in the stock’s trajectory among financial professionals, indicating that many see it as undervalued relative to its potential.
Stock Grading or Fundamental View
Sonoco Products Company has received a Stocks Telegraph Grade of 40. This score reflects moderate fundamentals and suggests that while the firm demonstrates solid operational metrics, there may be areas requiring attention for stronger performance. Investors seeking familiarity with both stability and upside in their portfolios might find SON an intriguing option, albeit one that warrants a vigilant eye on broader economic conditions.
Conclusion
Sonoco Products Company, priced at $45.64 with an Equal-Weight rating from Wells Fargo, presents an opportunity for investors looking for moderate growth potential in a stable sector. The recent uptick in earnings and analyst sentiment indicates resilience, while its price positioning suggests further upside is plausible, albeit at a measured pace. Ideal for investors with a medium risk tolerance aiming for growth without excessive volatility, SON is a stock that merits close attention amidst evolving market dynamics, especially in predicting how economic factors might influence its performance in the coming months.