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Are Investors Undervaluing Graphic Packaging Holding Company (GPK) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Graphic Packaging Holding Company (GPK - Free Report) . GPK is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.91, which compares to its industry's average of 13.08. Over the past year, GPK's Forward P/E has been as high as 10.78 and as low as 8.29, with a median of 9.24.

We should also highlight that GPK has a P/B ratio of 3.51. The P/B ratio is used to compare a stock's market value with 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 8.37. Over the past 12 months, GPK's P/B has been as high as 3.85 and as low as 3, with a median of 3.39.

Finally, we should also recognize that GPK has a P/CF ratio of 7.02. 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. GPK's P/CF compares to its industry's average P/CF of 21.46. Over the past 52 weeks, GPK's P/CF has been as high as 9.12 and as low as 6.20, with a median of 7.84.

These are just a handful of the figures considered in Graphic Packaging Holding Company's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GPK is an impressive value stock right now.


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