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Graphic Packaging (GPK) Gains As Market Dips: What You Should Know

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In the latest trading session, Graphic Packaging (GPK - Free Report) closed at $22.28, marking a +0.13% move from the previous day. This change outpaced the S&P 500's 0.27% loss on the day. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq gained 0.14%.

Coming into today, shares of the packaging company had gained 0.04% in the past month. In that same time, the Industrial Products sector lost 2.82%, while the S&P 500 lost 2.86%.

Graphic Packaging will be looking to display strength as it nears its next earnings release, which is expected to be October 31, 2023. The company is expected to report EPS of $0.73, up 8.96% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.49 billion, up 1.52% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.84 per share and revenue of $9.8 billion, which would represent changes of +21.89% and +3.83%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Graphic Packaging. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Graphic Packaging is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Graphic Packaging currently has a Forward P/E ratio of 7.82. This valuation marks a discount compared to its industry's average Forward P/E of 11.77.

It is also worth noting that GPK currently has a PEG ratio of 0.31. 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 2.93 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 187, which puts it in the bottom 26% 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.

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