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Veritiv (VRTV) Gains As Market Dips: What You Should Know

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Veritiv (VRTV - Free Report) closed at $61.76 in the latest trading session, marking a +1.9% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.2%.

Heading into today, shares of the distributor of packaging and printing supplies had gained 23.19% over the past month, outpacing the Basic Materials sector's loss of 1.53% and the S&P 500's gain of 2.11% in that time.

Wall Street will be looking for positivity from VRTV as it approaches its next earnings report date. The company is expected to report EPS of $0.81, up 80% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for VRTV. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 remained stagnant within the past month. VRTV is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, VRTV is holding a Forward P/E ratio of 13.47. For comparison, its industry has an average Forward P/E of 13.76, which means VRTV is trading at a discount to the group.

The Paper and Related Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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