Veritiv (VRTV) closed the most recent trading day at $133.58, moving +1.1% from the previous trading session. This change lagged the S&P 500's 1.15% gain on the day. Meanwhile, the Dow gained 1.11%, and the Nasdaq, a tech-heavy index, added 11.35%.
Prior to today's trading, shares of the distributor of packaging and printing supplies had gained 4.87% over the past month. This has outpaced the Basic Materials sector's gain of 0.42% and the S&P 500's gain of 4.49% in that time.
Veritiv will be looking to display strength as it nears its next earnings release, which is expected to be February 28, 2023. In that report, analysts expect Veritiv to post earnings of $5.44 per share. This would mark 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Veritiv currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note Veritiv's current valuation metrics, including its Forward P/E ratio of 7.86. Its industry sports an average Forward P/E of 8.38, so we one might conclude that Veritiv is trading at a discount comparatively.
Investors should also note that VRTV has a PEG ratio of 0.51 right now. 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. Paper and Related Products stocks are, on average, holding a PEG ratio of 0.82 based on yesterday's closing prices.
The Paper and Related Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners UpVeritiv Corporation (VRTV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
