Graphic Packaging (GPK) Ascends While Market Falls: Some Facts to Note
The latest trading session saw Graphic Packaging (GPK) ending at $20.93, denoting a +0.34% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.5%. Meanwhile, the Dow experienced a rise of 0.12%, and the technology-dominated Nasdaq saw a decrease of 1.23%.
Shares of the packaging company witnessed a loss of 10.66% over the previous month, trailing the performance of the Industrial Products sector with its loss of 2% and the S&P 500's loss of 2.4%.
The upcoming earnings release of Graphic Packaging will be of great interest to investors. The company's earnings report is expected on October 31, 2023. The company is predicted to post an EPS of $0.73, indicating an 8.96% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.49 billion, up 1.52% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.84 per share and revenue of $9.8 billion. These totals would mark changes of +21.89% and +3.83%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Graphic Packaging. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Graphic Packaging boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Graphic Packaging is currently trading at a Forward P/E ratio of 7.33. For comparison, its industry has an average Forward P/E of 11.19, which means Graphic Packaging is trading at a discount to the group.
Also, we should mention that GPK has a PEG ratio of 0.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Containers - Paper and Packaging industry held an average PEG ratio of 2.87.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
To follow GPK in the coming trading sessions, be sure to utilize Zacks.com.
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Graphic Packaging Holding Company (GPK) : Free Stock Analysis Report
