Graphic Packaging (GPK) Surpasses Market Returns: Some Facts Worth Knowing
Graphic Packaging (GPK) closed the most recent trading day at $20.37, moving +0.99% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.73% for the day. Meanwhile, the Dow experienced a rise of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.93%.
Shares of the packaging company witnessed a loss of 11.54% over the previous month, trailing the performance of the Industrial Products sector with its loss of 5.07% and the S&P 500's loss of 2.29%.
The investment community will be paying close attention to the earnings performance of Graphic Packaging in its upcoming release. The company is slated to reveal its earnings on October 31, 2023. The company is predicted to post an EPS of $0.72, indicating a 7.46% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.46 billion, reflecting a 0.44% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.83 per share and a revenue of $9.77 billion, representing changes of +21.46% and +3.5%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Graphic Packaging. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.63% lower. Graphic Packaging is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Graphic Packaging is presently being traded at a Forward P/E ratio of 7.14. This denotes a discount relative to the industry's average Forward P/E of 10.66.
Also, we should mention that GPK has a PEG ratio of 0.29. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. GPK's industry had an average PEG ratio of 2.73 as of yesterday's close.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 32% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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.
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Graphic Packaging Holding Company (GPK) : Free Stock Analysis Report
