In the latest trading session, Sonoco (SON) closed at $62.53, marking a -0.03% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.41%. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, added 0.07%.
Coming into today, shares of the packaging maker had gained 1.34% in the past month. In that same time, the Industrial Products sector lost 4.1%, while the S&P 500 lost 5.13%.
Investors will be hoping for strength from Sonoco as it approaches its next earnings release. On that day, Sonoco is projected to report earnings of $1.43 per share, which would represent year-over-year growth of 57.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. Sonoco is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Sonoco is currently trading at a Forward P/E ratio of 9.88. This represents a discount compared to its industry's average Forward P/E of 12.22.
Investors should also note that SON has a PEG ratio of 1.98 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 2.02 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 143, putting it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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