REYN Stock Attractive After Its Recent Rally and Earnings Beat?

Reynolds Consumer Products (REYN) is regaining investor attention after a strong three-month run and a first-quarter earnings beat. Shares rose 23.5% over the past three months, beating industry growth of 4.4%. The company reported adjusted earnings of 28 cents per share for the first quarter, up 22% year over year and ahead of the Zacks Consensus estimate of 25 cents. Net revenues climbed 7% to $877 million, also above the $822 million consensus. Growth was supported by pricing (+5 points) and retail volume (+2 points). Gross profit increased 9.5% to $207 million, with gross margin up 50 basis points to 23.6%. Risks include aluminum and resin inflation headwinds of about $200 million annually and 2026 revenue guidance of down 3% to up 1%.