Graphic Packaging (GPK) Outpaces Stock Market Gains: What You Should Know
Graphic Packaging (GPK) closed the most recent trading day at $24.32, moving +1.76% from the previous trading session. This change outpaced the S&P 500's 0.28% gain on the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 5.28%.
Heading into today, shares of the packaging company had lost 0.29% over the past month, lagging the Industrial Products sector's gain of 7.86% and the S&P 500's gain of 4.86% in that time.
Investors will be hoping for strength from Graphic Packaging as it approaches its next earnings release, which is expected to be August 1, 2023. In that report, analysts expect Graphic Packaging to post earnings of $0.75 per share. This would mark year-over-year growth of 25%. Our most recent consensus estimate is calling for quarterly revenue of $2.48 billion, up 5.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.99 per share and revenue of $9.92 billion, which would represent changes of +28.33% and +5.13%, respectively, from the prior year.
Any recent changes to analyst estimates for Graphic Packaging should also be noted by investors. 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 shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.88% lower within the past month. Graphic Packaging is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Graphic Packaging has a Forward P/E ratio of 8 right now. This represents a discount compared to its industry's average Forward P/E of 13.47.
Investors should also note that GPK has a PEG ratio of 0.32 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GPK's industry had an average PEG ratio of 2.04 as of yesterday's close.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 125, putting it in the top 50% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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
