Graphic Packaging (GPK) Declines More Than Market: Some Information for Investors
Graphic Packaging (GPK) closed the most recent trading day at $20.17, moving -1.27% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.17%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, added 0.27%.
Coming into today, shares of the packaging company had lost 9.52% in the past month. In that same time, the Industrial Products sector lost 6.08%, while the S&P 500 lost 3.95%.
The investment community will be paying close attention to the earnings performance of Graphic Packaging in its upcoming release. The company is slated to reveal its earnings on October 31, 2023. It is anticipated that the company will report an EPS of $0.72, marking a 7.46% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.47 billion, indicating a 0.59% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.82 per share and revenue of $9.76 billion. These totals would mark changes of +21.03% and +3.41%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Graphic Packaging. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% lower. At present, Graphic Packaging boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Graphic Packaging is presently being traded at a Forward P/E ratio of 7.24. For comparison, its industry has an average Forward P/E of 10.78, which means Graphic Packaging is trading at a discount to the group.
Meanwhile, GPK's PEG ratio is currently 0.29. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Containers - Paper and Packaging industry was having an average PEG ratio of 2.75.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 173, positioning it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Graphic Packaging Holding Company (GPK) : Free Stock Analysis Report
