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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 $24.68 in the latest trading session, marking a -1.24% move from the prior day. This move lagged the S&P 500's daily loss of 0.6%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 2.87%.
Coming into today, shares of the packaging company had gained 5.09% in the past month. In that same time, the Industrial Products sector gained 4.57%, while the S&P 500 gained 6.22%.
Wall Street will be looking for positivity from Graphic Packaging as it approaches its next earnings report date. This is expected to be May 2, 2023. In that report, analysts expect Graphic Packaging to post earnings of $0.62 per share. This would mark year-over-year growth of 29.17%. Our most recent consensus estimate is calling for quarterly revenue of $2.39 billion, up 6.31% from the year-ago period.
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.
It is also important to note the recent changes to analyst estimates for Graphic Packaging. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.18% higher. Graphic Packaging currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Graphic Packaging is currently trading at a Forward P/E ratio of 9.1. For comparison, its industry has an average Forward P/E of 12.32, which means Graphic Packaging is trading at a discount to the group.
We can also see that GPK currently has a PEG ratio of 0.36. 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. Containers - Paper and Packaging stocks are, on average, holding a PEG ratio of 2.62 based on yesterday's closing prices.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 $24.68 in the latest trading session, marking a -1.24% move from the prior day. This move lagged the S&P 500's daily loss of 0.6%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 2.87%.
Coming into today, shares of the packaging company had gained 5.09% in the past month. In that same time, the Industrial Products sector gained 4.57%, while the S&P 500 gained 6.22%.
Wall Street will be looking for positivity from Graphic Packaging as it approaches its next earnings report date. This is expected to be May 2, 2023. In that report, analysts expect Graphic Packaging to post earnings of $0.62 per share. This would mark year-over-year growth of 29.17%. Our most recent consensus estimate is calling for quarterly revenue of $2.39 billion, up 6.31% from the year-ago period.
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.
It is also important to note the recent changes to analyst estimates for Graphic Packaging. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.18% higher. Graphic Packaging currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Graphic Packaging is currently trading at a Forward P/E ratio of 9.1. For comparison, its industry has an average Forward P/E of 12.32, which means Graphic Packaging is trading at a discount to the group.
We can also see that GPK currently has a PEG ratio of 0.36. 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. Containers - Paper and Packaging stocks are, on average, holding a PEG ratio of 2.62 based on yesterday's closing prices.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.