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PPL (PPL) Gains As Market Dips: What You Should Know

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PPL (PPL - Free Report) closed at $29.95 in the latest trading session, marking a +0.54% move from the prior day. This move outpaced the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.2%.

Coming into today, shares of the energy and utility holding company had gained 6.81% in the past month. In that same time, the Utilities sector gained 4.99%, while the S&P 500 gained 3.11%.

Investors will be hoping for strength from PPL as it approaches its next earnings release. On that day, PPL is projected to report earnings of $0.31 per share, which would represent a year-over-year decline of 47.46%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.17 per share and revenue of $6.25 billion, which would represent changes of -51.25% and -10.8%, respectively, from the prior year.

Any recent changes to analyst estimates for PPL should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PPL is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, PPL is holding a Forward P/E ratio of 25.46. This valuation marks a premium compared to its industry's average Forward P/E of 19.96.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 46% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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