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Berry Global (BERY) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Berry Global (BERY - Free Report) closed at $72.13, marking a -1.48% move from the previous day. This change lagged the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.02%.

Prior to today's trading, shares of the packaging company had gained 1.72% over the past month. This has outpaced the Industrial Products sector's loss of 0.32% and the S&P 500's loss of 0.13% in that time.

Berry Global will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.38, up 23.21% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.37 billion, up 7.56% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.41 per share and revenue of $14.46 billion. These totals would mark changes of +2.77% and +4.38%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Berry Global. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. Berry Global is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Berry Global currently has a Forward P/E ratio of 9.88. Its industry sports an average Forward P/E of 14.95, so we one might conclude that Berry Global is trading at a discount comparatively.

It is also worth noting that BERY currently has a PEG ratio of 0.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Containers - Paper and Packaging stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.

The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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