Sonoco (SON) closed at $62.62 in the latest trading session, marking a -0.22% move from the prior day. This change was narrower than the S&P 500's 1.13% loss on the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.16%.
Coming into today, shares of the packaging maker had lost 4.07% in the past month. In that same time, the Industrial Products sector lost 7.15%, while the S&P 500 lost 7.59%.
Wall Street will be looking for positivity from Sonoco as it approaches its next earnings report date. The company is expected to report EPS of $1.43, up 57.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.92 billion, up 35.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.33 per share and revenue of $7.46 billion. These totals would mark changes of +78.31% and +33.47%, respectively, from last year.
Any recent changes to analyst estimates for Sonoco should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Sonoco currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Sonoco currently has a Forward P/E ratio of 9.91. For comparison, its industry has an average Forward P/E of 11.87, which means Sonoco is trading at a discount to the group.
Investors should also note that SON has a PEG ratio of 1.98 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SON's industry had an average PEG ratio of 1.98 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 99, which puts it in the top 40% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Sonoco Products Company (SON) : Free Stock Analysis Report
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