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Berry Global (BERY) Stock Sinks As Market Gains: What You Should Know

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Berry Global (BERY - Free Report) closed the most recent trading day at $68.47, moving -1.07% from the previous trading session. This change lagged the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.16%.

Coming into today, shares of the packaging company had lost 1.56% in the past month. In that same time, the Industrial Products sector lost 3.12%, while the S&P 500 lost 5.39%.

Berry Global will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2022. In that report, analysts expect Berry Global to post earnings of $1.38 per share. This would mark year-over-year growth of 23.21%. Meanwhile, our latest consensus estimate is calling for revenue of $3.37 billion, up 7.56% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.42 per share and revenue of $14.45 billion. These totals would mark changes of +2.91% and +4.3%, respectively, from last year.

Any recent changes to analyst estimates for Berry Global should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Berry Global is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, Berry Global is holding a Forward P/E ratio of 9.33. Its industry sports an average Forward P/E of 14.31, so we one might conclude that Berry Global is trading at a discount comparatively.

Investors should also note that BERY has a PEG ratio of 0.93 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Containers - Paper and Packaging industry currently had an average PEG ratio of 1.67 as of yesterday's close.

The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% 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.

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