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PPL (PPL) Stock Declines While Market Improves: Some Information for Investors

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In the latest market close, PPL (PPL - Free Report) reached $31.85, with a -0.84% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.71%. On the other hand, the Dow registered a gain of 1.03%, and the technology-centric Nasdaq increased by 0.6%.

Prior to today's trading, shares of the energy and utility holding company had lost 0.12% over the past month. This has was narrower than the Utilities sector's loss of 0.71% and lagged the S&P 500's gain of 6.41% in that time.

The investment community will be closely monitoring the performance of PPL in its forthcoming earnings report. The company's upcoming EPS is projected at $0.42, signifying a 2.33% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.15 billion, indicating a 5.36% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.72 per share and a revenue of $8.22 billion, indicating changes of +7.5% and -1.07%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for PPL. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, there's been a 0.03% rise in the Zacks Consensus EPS estimate. As of now, PPL holds a Zacks Rank of #2 (Buy).

Looking at its valuation, PPL is holding a Forward P/E ratio of 18.7. This indicates a premium in contrast to its industry's Forward P/E of 17.37.

Meanwhile, PPL's PEG ratio is currently 2.74. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.78 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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