Graphic Packaging (GPK) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Graphic Packaging (GPK) closed the latest trading day at $26.10, indicating a -0.57% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.15% for the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq added 0.09%.
The packaging company's stock has climbed by 12.47% in the past month, exceeding the Industrial Products sector's gain of 5.41% and the S&P 500's gain of 3.5%.
Market participants will be closely following the financial results of Graphic Packaging in its upcoming release. The company's earnings per share (EPS) are projected to be $0.69, reflecting a 16.95% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.4 billion, showing a 0.74% escalation compared to the year-ago quarter.
Investors should also note any recent changes to analyst estimates for Graphic Packaging. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 0.36% higher within the past month. Right now, Graphic Packaging possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Graphic Packaging is currently trading at a Forward P/E ratio of 9.4. This expresses a discount compared to the average Forward P/E of 14.26 of its industry.
It is also worth noting that GPK currently has a PEG ratio of 0.38. 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 Containers - Paper and Packaging industry had an average PEG ratio of 2.81 as trading concluded yesterday.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 104, finds itself in the top 42% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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
