Graphic Packaging (GPK) Increases Despite Market Slip: Here's What You Need to Know
Graphic Packaging (GPK) closed the latest trading day at $24.88, indicating a +0.93% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.57%. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq depreciated by 1.64%.
The packaging company's shares have seen an increase of 6.34% over the last month, not keeping up with the Industrial Products sector's gain of 7.71% and outstripping the S&P 500's gain of 4%.
The upcoming earnings release of Graphic Packaging will be of great interest to investors. The company is predicted to post an EPS of $0.69, indicating a 16.95% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.4 billion, up 0.74% from the prior-year quarter.
Investors should also pay attention to any latest changes in analyst estimates for Graphic Packaging. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Graphic Packaging possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Graphic Packaging is presently being traded at a Forward P/E ratio of 8.86. This represents a discount compared to its industry's average Forward P/E of 14.05.
One should further note that GPK currently holds a PEG ratio of 0.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Containers - Paper and Packaging industry was having an average PEG ratio of 2.76.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 99, finds itself in the top 40% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Graphic Packaging Holding Company (GPK) : Free Stock Analysis Report
