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Graphic Packaging (GPK) Dips More Than Broader Markets: What You Should Know
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Graphic Packaging (GPK - Free Report) closed at $24.76 in the latest trading session, marking a -0.4% move from the prior day. This move lagged the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.64%.
Heading into today, shares of the packaging company had gained 5.12% over the past month, outpacing the Industrial Products sector's gain of 0.48% and lagging the S&P 500's gain of 7.71% in that time.
Graphic Packaging will be looking to display strength as it nears its next earnings release, which is expected to be May 2, 2023. The company is expected to report EPS of $0.62, up 29.17% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.39 billion, up 6.31% from the prior-year quarter.
GPK's full-year Zacks Consensus Estimates are calling for earnings of $2.75 per share and revenue of $9.9 billion. These results would represent year-over-year changes of +18.03% and +4.92%, respectively.
Any recent changes to analyst estimates for Graphic Packaging should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.12% higher. Graphic Packaging is currently a Zacks Rank #2 (Buy).
Investors should also note Graphic Packaging's current valuation metrics, including its Forward P/E ratio of 9.06. Its industry sports an average Forward P/E of 12.44, so we one might conclude that Graphic Packaging is trading at a discount comparatively.
It is also worth noting that GPK currently has a PEG ratio of 0.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Containers - Paper and Packaging was holding an average PEG ratio of 2.59 at yesterday's closing price.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Graphic Packaging (GPK) Dips More Than Broader Markets: What You Should Know
Graphic Packaging (GPK - Free Report) closed at $24.76 in the latest trading session, marking a -0.4% move from the prior day. This move lagged the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.64%.
Heading into today, shares of the packaging company had gained 5.12% over the past month, outpacing the Industrial Products sector's gain of 0.48% and lagging the S&P 500's gain of 7.71% in that time.
Graphic Packaging will be looking to display strength as it nears its next earnings release, which is expected to be May 2, 2023. The company is expected to report EPS of $0.62, up 29.17% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.39 billion, up 6.31% from the prior-year quarter.
GPK's full-year Zacks Consensus Estimates are calling for earnings of $2.75 per share and revenue of $9.9 billion. These results would represent year-over-year changes of +18.03% and +4.92%, respectively.
Any recent changes to analyst estimates for Graphic Packaging should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.12% higher. Graphic Packaging is currently a Zacks Rank #2 (Buy).
Investors should also note Graphic Packaging's current valuation metrics, including its Forward P/E ratio of 9.06. Its industry sports an average Forward P/E of 12.44, so we one might conclude that Graphic Packaging is trading at a discount comparatively.
It is also worth noting that GPK currently has a PEG ratio of 0.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Containers - Paper and Packaging was holding an average PEG ratio of 2.59 at yesterday's closing price.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.