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

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

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Berry Global (BERY - Free Report) closed the most recent trading day at $56.53, moving +1.89% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.21%. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.11%.

Prior to today's trading, shares of the packaging company had lost 8.74% over the past month. This has was narrower than the Industrial Products sector's loss of 8.79% and lagged the S&P 500's loss of 8.08% in that time.

Berry Global will be looking to display strength as it nears its next earnings release, which is expected to be May 5, 2022. In that report, analysts expect Berry Global to post earnings of $1.78 per share. This would mark year-over-year growth of 11.95%. Meanwhile, our latest consensus estimate is calling for revenue of $3.75 billion, up 11.35% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.22 per share and revenue of $14.99 billion. These totals would mark changes of +0.14% and +8.25%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Berry Global. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.11% lower. Berry Global is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Berry Global has a Forward P/E ratio of 7.69 right now. Its industry sports an average Forward P/E of 12.91, so we one might conclude that Berry Global is trading at a discount comparatively.

Also, we should mention that BERY has a PEG ratio of 0.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Containers - Paper and Packaging was holding an average PEG ratio of 1.67 at yesterday's closing price.

The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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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