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

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PPL (PPL - Free Report) closed the most recent trading day at $33.61, moving -0.59% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.72%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.35%.

The energy and utility holding company's stock has climbed by 6.56% in the past month, exceeding the Utilities sector's gain of 0.66% and the S&P 500's gain of 1.02%.

The investment community will be closely monitoring the performance of PPL in its forthcoming earnings report. The company is scheduled to release its earnings on February 13, 2025. The company's upcoming EPS is projected at $0.37, signifying a 7.5% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.09 billion, showing a 3.01% escalation compared to the year-ago quarter.

Investors should also pay attention to any latest changes in analyst estimates for PPL. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.09% increase. PPL is holding a Zacks Rank of #2 (Buy) right now.

In the context of valuation, PPL is at present trading with a Forward P/E ratio of 18.44. This denotes a premium relative to the industry's average Forward P/E of 16.97.

One should further note that PPL currently holds a PEG ratio of 2.73. 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 Utility - Electric Power industry stood at 2.56 at the close of the market yesterday.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 44% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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