Why Graphic Packaging (GPK) Dipped More Than Broader Market Today
Graphic Packaging (GPK) closed the latest trading day at $21.49, indicating a -1.56% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.13%. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq decreased by 0.12%.
The packaging company's shares have seen an increase of 0.32% over the last month, surpassing the Industrial Products sector's loss of 7.73% and the S&P 500's loss of 5.53%.
The upcoming earnings release of Graphic Packaging will be of great interest to investors. The company's earnings report is expected on October 31, 2023. The company's upcoming EPS is projected at $0.73, signifying an 8.96% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.49 billion, up 1.52% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.84 per share and revenue of $9.8 billion, which would represent changes of +21.89% and +3.83%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Graphic Packaging. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Graphic Packaging is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Graphic Packaging is holding a Forward P/E ratio of 7.68. This denotes a discount relative to the industry's average Forward P/E of 11.52.
We can also see that GPK currently has a PEG ratio of 0.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Containers - Paper and Packaging was holding an average PEG ratio of 2.92 at yesterday's closing price.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 166, placing it within the bottom 35% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Graphic Packaging Holding Company (GPK) : Free Stock Analysis Report
