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Is Graphic Packaging Holding Company (GPK) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Graphic Packaging Holding Company (GPK - Free Report) . GPK is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.70. This compares to its industry's average Forward P/E of 13.26. GPK's Forward P/E has been as high as 10.78 and as low as 8.29, with a median of 9.31, all within the past year.
Another valuation metric that we should highlight is GPK's P/B ratio of 3.39. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 9.28. Over the past year, GPK's P/B has been as high as 3.85 and as low as 3, with a median of 3.38.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GPK has a P/S ratio of 0.77. This compares to its industry's average P/S of 0.81.
Finally, our model also underscores that GPK has a P/CF ratio of 6.78. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.76. Within the past 12 months, GPK's P/CF has been as high as 9.12 and as low as 6.20, with a median of 8.02.
These are only a few of the key metrics included in Graphic Packaging Holding Company's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GPK looks like an impressive value stock at the moment.
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Is Graphic Packaging Holding Company (GPK) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Graphic Packaging Holding Company (GPK - Free Report) . GPK is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.70. This compares to its industry's average Forward P/E of 13.26. GPK's Forward P/E has been as high as 10.78 and as low as 8.29, with a median of 9.31, all within the past year.
Another valuation metric that we should highlight is GPK's P/B ratio of 3.39. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 9.28. Over the past year, GPK's P/B has been as high as 3.85 and as low as 3, with a median of 3.38.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GPK has a P/S ratio of 0.77. This compares to its industry's average P/S of 0.81.
Finally, our model also underscores that GPK has a P/CF ratio of 6.78. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.76. Within the past 12 months, GPK's P/CF has been as high as 9.12 and as low as 6.20, with a median of 8.02.
These are only a few of the key metrics included in Graphic Packaging Holding Company's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GPK looks like an impressive value stock at the moment.