Amcor Shares Lag Behind S&P 500 Despite Sector Resilience in 2025

Amcor PLC (AMCR), a global leader in sustainable packaging solutions, has seen its stock lose 7.2% over the past 12 months, significantly trailing the S&P 500’s 14.8% increase during the same period. This divergence highlights growing investor skepticism despite the company’s strategic focus on eco-friendly materials and expansion in emerging markets. The underperformance correlates with a series of quarterly results that fell short of consensus expectations. In Q3 2025, Amcor reported adjusted earnings per share of $1.53, below the analyst average of $1.60, citing elevated input costs and slower-than-expected demand in North American and European markets. Revenue declined 2.4% year-over-year to $3.18 billion, reflecting ongoing pricing pressures and a shift in consumer spending patterns. Despite these headwinds, Amcor has maintained a robust free cash flow of $480 million in the first nine months of 2025, supporting its dividend payout of $1.20 per share annually. However, the stock’s price-to-earnings ratio of 19.7x remains above the S&P 500’s 17.3x median, suggesting potential valuation premium in a rising interest rate environment. Market analysts note that while Amcor continues to lead in sustainable packaging innovation—particularly with its new biodegradable film line launched in September—the pace of adoption has slowed in key regions, affecting investor sentiment. The company’s exposure to cyclical consumer goods and commodity volatility further amplifies its sensitivity to macroeconomic shifts.