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Graphic Packaging (GPK) Gains As Market Dips: What You Should Know

Graphic Packaging (GPK) closed at $26.31 in the latest trading session, marking a +1.82% move from the prior day. This move outpaced the S&P 500's daily loss of 0.38%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, lost 4.19%.

Heading into today, shares of the packaging company had gained 0.47% over the past month, lagging the Industrial Products sector's gain of 1.96% and the S&P 500's gain of 3.78% in that time.

Graphic Packaging will be looking to display strength as it nears its next earnings release. On that day, Graphic Packaging is projected to report earnings of $0.77 per share, which would represent year-over-year growth of 28.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.51 billion, up 6.61% from the year-ago period.

GPK's full-year Zacks Consensus Estimates are calling for earnings of $3.03 per share and revenue of $10 billion. These results would represent year-over-year changes of +30.04% and +5.97%, respectively.

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Any recent changes to analyst estimates for Graphic Packaging should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Graphic Packaging is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note Graphic Packaging's current valuation metrics, including its Forward P/E ratio of 8.54. This valuation marks a discount compared to its industry's average Forward P/E of 11.7.

Also, we should mention that GPK has a PEG ratio of 0.34. 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. GPK's industry had an average PEG ratio of 2.16 as of yesterday's close.

The Containers - Paper and Packaging industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% 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.

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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Graphic Packaging Holding Company (GPK) : Free Stock Analysis Report

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