Graphic Packaging (GPK) Gains But Lags Market: What You Should Know
Graphic Packaging (GPK) closed the most recent trading day at $24.79, moving +0.08% from the previous trading session. This move lagged the S&P 500's daily gain of 0.14%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 0.16%.
The the stock of packaging company has risen by 11.78% in the past month, leading the Industrial Products sector's gain of 10.3% and the S&P 500's gain of 4.89%.
Analysts and investors alike will be keeping a close eye on the performance of Graphic Packaging in its upcoming earnings disclosure. The company is expected to report EPS of $0.69, up 16.95% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.4 billion, showing a 0.74% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.85 per share and a revenue of $9.58 billion, indicating changes of +22.32% and +1.51%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Graphic Packaging. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Graphic Packaging possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Graphic Packaging is presently trading at a Forward P/E ratio of 8.68. This indicates a discount in contrast to its industry's Forward P/E of 14.11.
Investors should also note that GPK has a PEG ratio of 0.35 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Containers - Paper and Packaging industry had an average PEG ratio of 2.98.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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Graphic Packaging Holding Company (GPK) : Free Stock Analysis Report
