Packaging Corp. (PKG) closed the most recent trading day at $139.68, moving -1.25% from the previous trading session. This change lagged the S&P 500's daily gain of 0.22%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.26%.
Prior to today's trading, shares of the maker of containerboard and corrugated packaging products had lost 6.01% over the past month. This has was narrower than the Industrial Products sector's loss of 8.77% and the S&P 500's loss of 8.32% in that time.
Packaging Corp. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.87, up 32.26% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.13 billion, up 13.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.66 per share and revenue of $8.64 billion, which would represent changes of +24.17% and +11.77%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Packaging Corp.These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Packaging Corp. is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Packaging Corp. is holding a Forward P/E ratio of 12.14. This represents a no noticeable deviation compared to its industry's average Forward P/E of 12.14.
It is also worth noting that PKG currently has a PEG ratio of 2.43. 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. PKG's industry had an average PEG ratio of 1.39 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 28, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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