Graphic Packaging (GPK) Advances But Underperforms Market: Key Facts
Graphic Packaging (GPK) closed the latest trading day at $27.27, indicating a +0.22% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.89%. On the other hand, the Dow registered a gain of 1.03%, and the technology-centric Nasdaq increased by 1.25%.
The packaging company's shares have seen an increase of 9.98% over the last month, surpassing the Industrial Products sector's gain of 5.83% and the S&P 500's gain of 3.56%.
The investment community will be paying close attention to the earnings performance of Graphic Packaging in its upcoming release. The company is expected to report EPS of $0.63, down 18.18% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.39 billion, indicating a 1.82% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.71 per share and a revenue of $9.65 billion, representing changes of -6.87% and +2.4%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Graphic Packaging. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 3.63% lower within the past month. Graphic Packaging currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Graphic Packaging is at present trading with a Forward P/E ratio of 10.06. This denotes a discount relative to the industry's average Forward P/E of 15.29.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Graphic Packaging Holding Company (GPK) : Free Stock Analysis Report
