WestRock (WRK) Dips More Than Broader Markets: What You Should Know
WestRock (WRK) closed at $40.21 in the latest trading session, marking a -0.27% move from the prior day. This move lagged the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.02%.
Prior to today's trading, shares of the paper and packaging company had lost 16.85% over the past month. This has lagged the Basic Materials sector's loss of 15.74% and the S&P 500's loss of 7.99% in that time.
WestRock will be looking to display strength as it nears its next earnings release, which is expected to be August 4, 2022. In that report, analysts expect WestRock to post earnings of $1.49 per share. This would mark year-over-year growth of 49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.51 billion, up 14.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.11 per share and revenue of $21.4 billion. These totals would mark changes of +50.74% and +14.17%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for WestRock. These recent revisions tend to reflect the evolving nature of short-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 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. Within the past 30 days, our consensus EPS projection remained stagnant. WestRock is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, WestRock currently has a Forward P/E ratio of 7.89. This valuation marks a discount compared to its industry's average Forward P/E of 8.18.
Meanwhile, WRK's PEG ratio is currently 0.36. 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 0.36 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 45, which puts it in the top 18% 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.
To follow WRK in the coming trading sessions, be sure to utilize Zacks.com.
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