U.S. markets open in 7 hours 36 minutes
  • S&P Futures

    4,145.50
    -1.25 (-0.03%)
     
  • Dow Futures

    32,755.00
    -2.00 (-0.01%)
     
  • Nasdaq Futures

    13,239.00
    +10.25 (+0.08%)
     
  • Russell 2000 Futures

    1,921.20
    -0.60 (-0.03%)
     
  • Crude Oil

    89.46
    +0.45 (+0.51%)
     
  • Gold

    1,789.30
    -1.90 (-0.11%)
     
  • Silver

    19.88
    +0.03 (+0.17%)
     
  • EUR/USD

    1.0187
    0.0000 (-0.00%)
     
  • 10-Yr Bond

    2.8400
    0.0000 (0.00%)
     
  • Vix

    21.15
    -0.29 (-1.35%)
     
  • GBP/USD

    1.2081
    +0.0010 (+0.09%)
     
  • USD/JPY

    135.2370
    +0.2670 (+0.20%)
     
  • BTC-USD

    23,431.49
    +443.51 (+1.93%)
     
  • CMC Crypto 200

    545.71
    +10.49 (+1.96%)
     
  • FTSE 100

    7,439.74
    -8.32 (-0.11%)
     
  • Nikkei 225

    28,263.67
    +87.80 (+0.31%)
     

Packaging Corp. (PKG) Gains But Lags Market: What You Should Know

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Packaging Corp. (PKG) closed at $139.03 in the latest trading session, marking a +0.54% move from the prior day. The stock lagged the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.07%.

Coming into today, shares of the maker of containerboard and corrugated packaging products had lost 0.88% in the past month. In that same time, the Industrial Products sector gained 4.21%, while the S&P 500 gained 7.25%.

Wall Street will be looking for positivity from Packaging Corp. as it approaches its next earnings report date. This is expected to be July 25, 2022. In that report, analysts expect Packaging Corp. to post earnings of $2.87 per share. This would mark year-over-year growth of 32.26%. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 13.42% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.61 per share and revenue of $8.64 billion, which would represent changes of +23.64% and +11.8%, respectively, from the prior year.

Any recent changes to analyst estimates for Packaging Corp. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.41% lower. Packaging Corp. is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Packaging Corp. is currently trading at a Forward P/E ratio of 11.91. Its industry sports an average Forward P/E of 12, so we one might conclude that Packaging Corp. is trading at a discount comparatively.

We can also see that PKG currently has a PEG ratio of 2.38. 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 currently had an average PEG ratio of 1.92 as of yesterday's close.

The Containers - Paper and Packaging industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Packaging Corporation of America (PKG) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.