Greif (GEF) Gains As Market Dips: What You Should Know
Greif (GEF) closed the most recent trading day at $60.33, moving +0.23% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.14%. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.02%.
Prior to today's trading, shares of the industrial packaging company had lost 2.56% over the past month. This has lagged the Industrial Products sector's loss of 0.32% and the S&P 500's loss of 0.13% in that time.
Wall Street will be looking for positivity from Greif as it approaches its next earnings report date. On that day, Greif is projected to report earnings of $1.20 per share, which would represent year-over-year growth of 96.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.5 billion, up 30.4% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.24 per share and revenue of $6.16 billion, which would represent changes of +11.43% and +10.83%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Greif. 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. Within the past 30 days, our consensus EPS projection has moved 2.3% higher. Greif is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, Greif is holding a Forward P/E ratio of 9.65. This represents a discount compared to its industry's average Forward P/E of 14.95.
Investors should also note that GEF has a PEG ratio of 0.96 right now. 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 currently had an average PEG ratio of 1.77 as of yesterday's close.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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