Graphic Packaging (GPK) Laps the Stock Market: Here's Why
The most recent trading session ended with Graphic Packaging (GPK) standing at $25.33, reflecting a +0.36% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.22%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.32%.
Coming into today, shares of the packaging company had gained 2.56% in the past month. In that same time, the Industrial Products sector lost 1.03%, while the S&P 500 gained 1.61%.
The investment community will be closely monitoring the performance of Graphic Packaging in its forthcoming earnings report. The company is scheduled to release its earnings on February 20, 2024. In that report, analysts expect Graphic Packaging to post earnings of $0.69 per share. This would mark year-over-year growth of 16.95%. Alongside, our most recent consensus estimate is anticipating revenue of $2.4 billion, indicating a 0.74% upward movement from the same quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has shifted 0.36% upward. At present, Graphic Packaging boasts a Zacks Rank of #2 (Buy).
With respect to valuation, Graphic Packaging is currently being traded at a Forward P/E ratio of 9.04. Its industry sports an average Forward P/E of 13.77, so one might conclude that Graphic Packaging is trading at a discount comparatively.
Investors should also note that GPK has a PEG ratio of 0.36 right now. 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. The average PEG ratio for the Containers - Paper and Packaging industry stood at 2.88 at the close of the market yesterday.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 111, this industry ranks in the top 45% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Graphic Packaging Holding Company (GPK) : Free Stock Analysis Report
