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PPL (PPL) Gains But Lags Market: What You Should Know

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PPL (PPL - Free Report) closed the most recent trading day at $26.79, moving +0.64% from the previous trading session. This change lagged the S&P 500's 1.24% gain on the day. Meanwhile, the Dow gained 1.23%, and the Nasdaq, a tech-heavy index, added 0.15%.

Coming into today, shares of the energy and utility holding company had lost 5.7% in the past month. In that same time, the Utilities sector gained 5.49%, while the S&P 500 lost 2.45%.

PPL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.43, up 53.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.62 billion, up 8.44% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.47 per share and revenue of $6.38 billion, which would represent changes of +40% and +10.28%, respectively, from the prior year.

Any recent changes to analyst estimates for PPL should also be noted by investors. 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 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. The Zacks Consensus EPS estimate has moved 3.08% lower within the past month. PPL currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, PPL currently has a Forward P/E ratio of 18.15. For comparison, its industry has an average Forward P/E of 18.49, which means PPL is trading at a discount to the group.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 27% 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.

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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