Veritiv (VRTV) Stock Sinks As Market Gains: What You Should Know
Veritiv (VRTV) closed the most recent trading day at $129.99, moving -0.94% from the previous trading session. This move lagged the S&P 500's daily gain of 0.57%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.33%.
Coming into today, shares of the distributor of packaging and printing supplies had lost 13.46% in the past month. In that same time, the Basic Materials sector lost 0.51%, while the S&P 500 gained 1.72%.
Veritiv will be looking to display strength as it nears its next earnings release. In that report, analysts expect Veritiv to post earnings of $4.90 per share. This would mark a year-over-year decline of 4.3%.
It is also important to note the recent changes to analyst estimates for Veritiv. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 15.18% higher. Veritiv currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Veritiv is holding a Forward P/E ratio of 6.78. Its industry sports an average Forward P/E of 7.01, so we one might conclude that Veritiv is trading at a discount comparatively.
Also, we should mention that VRTV has a PEG ratio of 0.44. 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. The Paper and Related Products was holding an average PEG ratio of 0.97 at yesterday's closing price.
The Paper and Related Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% 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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Veritiv Corporation (VRTV) : Free Stock Analysis Report
