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PPL (PPL) Dips More Than Broader Markets: What You Should Know

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PPL (PPL - Free Report) closed the most recent trading day at $26.26, moving -1.94% from the previous trading session. This change lagged the S&P 500's 1.65% loss on the day. Elsewhere, the Dow lost 1.63%, while the tech-heavy Nasdaq lost 6.65%.

Prior to today's trading, shares of the energy and utility holding company had lost 3.74% over the past month. This has lagged the Utilities sector's loss of 1.36% and the S&P 500's gain of 0.3% in that time.

Investors will be hoping for strength from PPL as it approaches its next earnings release. The company is expected to report EPS of $0.41, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.86 billion, up 4.64% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.59 per share and revenue of $7.3 billion, which would represent changes of +12.77% and -7.62%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for PPL. These revisions help to show the ever-changing nature of near-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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.47% lower. PPL is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note PPL's current valuation metrics, including its Forward P/E ratio of 16.82. Its industry sports an average Forward P/E of 16.89, so we one might conclude that PPL is trading at a discount comparatively.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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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