Clearwater Paper (CLW) closed the most recent trading day at $40.08, moving -1.26% from the previous trading session. This change lagged the S&P 500's daily loss of 1.13%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.16%.
Prior to today's trading, shares of the maker of pulp-based products had lost 11.7% over the past month. This has lagged the Basic Materials sector's loss of 5.62% and the S&P 500's loss of 7.59% in that time.
Investors will be hoping for strength from Clearwater Paper as it approaches its next earnings release. In that report, analysts expect Clearwater Paper to post earnings of $1.52 per share. This would mark year-over-year growth of 176.36%. Our most recent consensus estimate is calling for quarterly revenue of $551 million, up 22.31% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.10 per share and revenue of $2.14 billion, which would represent changes of +298.06% and +20.78%, respectively, from the prior year.
Any recent changes to analyst estimates for Clearwater Paper should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Clearwater Paper is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that Clearwater Paper has a Forward P/E ratio of 9.9 right now. Its industry sports an average Forward P/E of 7.67, so we one might conclude that Clearwater Paper is trading at a premium comparatively.
The Paper and Related Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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