Greif (GEF) Increases Yet Falls Behind Market: What Investors Need to Know

Greif (GEF) ended the recent trading session at $62.12, demonstrating a +0.45% swing from the preceding day's closing price. This change lagged the S&P 500's 1.2% gain on the day. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 1.59%.

Shares of the industrial packaging company witnessed a loss of 7.4% over the previous month, trailing the performance of the Industrial Products sector with its loss of 3.72% and the S&P 500's loss of 4.16%.

The investment community will be closely monitoring the performance of Greif in its forthcoming earnings report. The company is predicted to post an EPS of $0.77, indicating a 56.5% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.31 billion, indicating a 0.34% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4 per share and a revenue of $5.29 billion, signifying shifts of -34.85% and +1.31%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Greif. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Within the past 30 days, our consensus EPS projection has moved 5.13% higher. As of now, Greif holds a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Greif has a Forward P/E ratio of 15.48 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.04.

Also, we should mention that GEF has a PEG ratio of 1.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Containers - Paper and Packaging industry currently had an average PEG ratio of 3.44 as of yesterday's close.

The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 25% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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