International Paper (IP - Free Report) closed the most recent trading day at $45.65, moving -0.2% from the previous trading session. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow 0%, while the tech-heavy Nasdaq added 0.92%.
Heading into today, shares of the global paper and packaging company had gained 15.02% over the past month, outpacing the Basic Materials sector's loss of 2% and the S&P 500's loss of 4.06% in that time.
Wall Street will be looking for positivity from IP as it approaches its next earnings report date. This is expected to be February 7, 2019. On that day, IP is projected to report earnings of $1.63 per share, which would represent year-over-year growth of 28.35%. Our most recent consensus estimate is calling for quarterly revenue of $5.86 billion, up 2.6% from the year-ago period.
IP's full-year Zacks Consensus Estimates are calling for earnings of $5.31 per share and revenue of $23.22 billion. These results would represent year-over-year changes of +52.15% and +1.35%, respectively.
Investors should also note any recent changes to analyst estimates for IP. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 3.86% higher within the past month. IP is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, IP is currently trading at a Forward P/E ratio of 8.59. Its industry sports an average Forward P/E of 9.97, so we one might conclude that IP is trading at a discount comparatively.
We can also see that IP currently has a PEG ratio of 0.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Paper and Related Products was holding an average PEG ratio of 1.67 at yesterday's closing price.
The Paper and Related Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.