Why the Market Dipped But Graphic Packaging (GPK) Gained Today

In the latest market close, Graphic Packaging (GPK) reached $28.90, with a +0.84% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.28%. Meanwhile, the Dow experienced a drop of 0.08%, and the technology-dominated Nasdaq saw a decrease of 0.42%.

Coming into today, shares of the packaging company had gained 8.68% in the past month. In that same time, the Industrial Products sector gained 5.84%, while the S&P 500 gained 2.67%.

Investors will be eagerly watching for the performance of Graphic Packaging in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 30, 2024. The company is expected to report EPS of $0.63, down 18.18% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.39 billion, showing a 1.82% drop compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.71 per share and a revenue of $9.65 billion, signifying shifts of -6.87% and +2.4%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Graphic Packaging. 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. 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.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Graphic Packaging is currently a Zacks Rank #3 (Hold).

In terms of valuation, Graphic Packaging is currently trading at a Forward P/E ratio of 10.59. This expresses a discount compared to the average Forward P/E of 15.48 of its industry.

The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 33% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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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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