Graphic Packaging (GPK) Laps the Stock Market: Here's Why
Graphic Packaging (GPK) ended the recent trading session at $24.67, demonstrating a +1.52% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.27%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.19%.
The the stock of packaging company has risen by 7.24% in the past month, lagging the Industrial Products sector's gain of 8.49% and overreaching the S&P 500's gain of 6.94%.
Investors will be eagerly watching for the performance of Graphic Packaging in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.69, reflecting a 16.95% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.4 billion, up 0.74% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.85 per share and revenue of $9.58 billion, which would represent changes of +22.32% and +1.51%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Graphic Packaging. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Graphic Packaging is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Graphic Packaging is currently exchanging hands at a Forward P/E ratio of 8.51. This signifies a discount in comparison to the average Forward P/E of 14.2 for its industry.
We can additionally observe that GPK currently boasts a PEG ratio of 0.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GPK's industry had an average PEG ratio of 3.03 as of yesterday's close.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 170, positioning it in the bottom 33% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Graphic Packaging Holding Company (GPK) : Free Stock Analysis Report
