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In the latest trading session, WestRock (WRK) closed at $41, marking a +1.49% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.07%.
Prior to today's trading, shares of the paper and packaging company had gained 0.6% over the past month. This has outpaced the Basic Materials sector's loss of 9.96% and lagged the S&P 500's gain of 7.25% 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 14.44% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.09 per share and revenue of $21.4 billion, which would represent changes of +50.15% and +14.18%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for WestRock. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.49% lower within the past month. WestRock is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, WestRock currently has a Forward P/E ratio of 7.94. This represents a no noticeable deviation compared to its industry's average Forward P/E of 7.94.
Meanwhile, WRK's PEG ratio is currently 0.36. 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. Paper and Related Products stocks are, on average, holding a PEG ratio of 0.36 based on yesterday's closing prices.
The Paper and Related Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% 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.
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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