Yahoo Finance Veritiv (VRTV) Gains But Lags Market: What You Should Know
Veritiv (VRTV) closed the most recent trading day at $139.99, moving +1.28% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.29%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq lost 4.94%.
Prior to today's trading, shares of the distributor of packaging and printing supplies had gained 23.96% over the past month. This has outpaced the Basic Materials sector's gain of 3.27% and the S&P 500's gain of 5.64% in that time.
Wall Street will be looking for positivity from Veritiv as it approaches its next earnings report date. On that day, Veritiv is projected to report earnings of $5.44 per share, which would represent year-over-year growth of 48.23%.
It is also important to note the recent changes to analyst estimates for Veritiv. 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. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Veritiv is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Veritiv currently has a Forward P/E ratio of 8.23. This represents a discount compared to its industry's average Forward P/E of 9.42.
We can also see that VRTV currently has a PEG ratio of 0.53. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Paper and Related Products was holding an average PEG ratio of 0.83 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 18, which puts it in the top 8% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Veritiv Corporation (VRTV) : Free Stock Analysis Report
