Graphic Packaging (GPK) Stock Drops Despite Market Gains: Important Facts to Note
In the latest market close, Graphic Packaging (GPK) reached $25.70, with a -0.19% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.08%. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq increased by 0.02%.
Prior to today's trading, shares of the packaging company had gained 4.38% over the past month. This has lagged the Industrial Products sector's gain of 4.54% and outpaced the S&P 500's gain of 3.52% in that time.
Investors will be eagerly watching for the performance of Graphic Packaging in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 20, 2024. The company is expected to report EPS of $0.69, up 16.95% from the prior-year quarter. 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. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.36% higher. At present, Graphic Packaging boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Graphic Packaging is currently trading at a Forward P/E ratio of 9.22. For comparison, its industry has an average Forward P/E of 14.3, which means Graphic Packaging is trading at a discount to the group.
One should further note that GPK currently holds a PEG ratio of 0.37. 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. The average PEG ratio for the Containers - Paper and Packaging industry stood at 2.83 at the close of the market yesterday.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 163, positioning it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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Graphic Packaging Holding Company (GPK) : Free Stock Analysis Report
