Graphic Packaging (GPK) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Graphic Packaging (GPK) closed at $23.94, marking a -0.46% move from the previous day. This move lagged the S&P 500's daily gain of 0.39%.
Prior to today's trading, shares of the packaging company had lost 7.54% over the past month. This has lagged the Industrial Products sector's gain of 5.38% and the S&P 500's gain of 3.16% in that time.
Wall Street will be looking for positivity from Graphic Packaging as it approaches its next earnings report date. This is expected to be August 1, 2023. In that report, analysts expect Graphic Packaging to post earnings of $0.76 per share. This would mark year-over-year growth of 26.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.49 billion, up 5.54% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3 per share and revenue of $9.95 billion. These totals would mark changes of +28.76% and +5.37%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Graphic Packaging. These revisions help to show the ever-changing nature 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.94% lower. Graphic Packaging is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Graphic Packaging is currently trading at a Forward P/E ratio of 8.03. For comparison, its industry has an average Forward P/E of 13.17, which means Graphic Packaging is trading at a discount to the group.
Meanwhile, GPK's PEG ratio is currently 0.32. 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. The Containers - Paper and Packaging was holding an average PEG ratio of 2 at yesterday's closing price.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 12% 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
