Back to top

Image: Bigstock

PPL (PPL) Stock Drops Despite Market Gains: Important Facts to Note

Read MoreHide Full Article

PPL (PPL - Free Report) closed at $27.91 in the latest trading session, marking a -0.61% move from the prior day. This change lagged the S&P 500's daily gain of 0.77%. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.95%.

The energy and utility holding company's shares have seen a decrease of 5.1% over the last month, not keeping up with the Utilities sector's loss of 3.86% and the S&P 500's gain of 3.71%.

Analysts and investors alike will be keeping a close eye on the performance of PPL in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.31, reflecting a 6.9% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.91 billion, up 4.73% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.71 per share and revenue of $8.26 billion. These totals would mark changes of +6.88% and -0.62%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for PPL. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.29% upward. Currently, PPL is carrying a Zacks Rank of #2 (Buy).

In terms of valuation, PPL is currently trading at a Forward P/E ratio of 16.42. This represents a premium compared to its industry's average Forward P/E of 15.

Meanwhile, PPL's PEG ratio is currently 2.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Utility - Electric Power industry had an average PEG ratio of 2.6.

The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 38% echelons 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.

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

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

PPL Corporation (PPL) - free report >>

Published in