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

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Graphic Packaging (GPK - Free Report) closed the most recent trading day at $25.24, moving +1.9% from the previous trading session. This change outpaced the S&P 500's 0.1% loss on the day. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 0.3%.

The packaging company's stock has dropped by 3.62% in the past month, falling short of the Industrial Products sector's gain of 5.44% and the S&P 500's gain of 5.78%.

The upcoming earnings release of Graphic Packaging will be of great interest to investors. The company's earnings report is expected on February 20, 2024. In that report, analysts expect Graphic Packaging to post earnings of $0.69 per share. This would mark year-over-year growth of 16.95%. Alongside, our most recent consensus estimate is anticipating revenue of $2.42 billion, indicating a 1.61% upward movement from the same quarter last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Graphic Packaging. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. The Zacks Consensus EPS estimate has moved 0.57% higher within the past month. Right now, Graphic Packaging possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Graphic Packaging is currently exchanging hands at a Forward P/E ratio of 8.82. This represents a discount compared to its industry's average Forward P/E of 14.68.

One should further note that GPK currently holds a PEG ratio of 0.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Containers - Paper and Packaging industry had an average PEG ratio of 2.98 as trading concluded yesterday.

The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 109, finds itself in the top 44% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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