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Sylvamo Corporation (SLVM) Gains But Lags Market: What You Should Know

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Sylvamo Corporation (SLVM - Free Report) closed the latest trading day at $65.08, indicating a +0.15% change from the previous session's end. This change lagged the S&P 500's 1.03% gain on the day. Elsewhere, the Dow saw an upswing of 0.46%, while the tech-heavy Nasdaq appreciated by 1.19%.

Heading into today, shares of the company had gained 7.83% over the past month, outpacing the Basic Materials sector's loss of 2.43% and the S&P 500's loss of 1.57% in that time.

Investors will be eagerly watching for the performance of Sylvamo Corporation in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 10, 2024. The company is expected to report EPS of $1.05, down 58.17% from the prior-year quarter.

Any recent changes to analyst estimates for Sylvamo Corporation should also be noted by investors. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.96% higher within the past month. Sylvamo Corporation presently features a Zacks Rank of #1 (Strong Buy).

Investors should also note Sylvamo Corporation's current valuation metrics, including its Forward P/E ratio of 10.57. For comparison, its industry has an average Forward P/E of 11.97, which means Sylvamo Corporation is trading at a discount to the group.

We can additionally observe that SLVM currently boasts 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 average PEG ratio for the Paper and Related Products industry stood at 0.9 at the close of the market yesterday.

The Paper and Related Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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