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In the latest trading session, Packaging Corp. (PKG) closed at $138.92, marking a -0.02% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.02%.
Prior to today's trading, shares of the maker of containerboard and corrugated packaging products had lost 11.65% over the past month. This has lagged the Industrial Products sector's loss of 10.38% and the S&P 500's loss of 7.99% in that time.
Investors will be hoping for strength from Packaging Corp. as it approaches its next earnings release. In that report, analysts expect Packaging Corp. to post earnings of $2.87 per share. This would mark year-over-year growth of 32.26%. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 13.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.66 per share and revenue of $8.64 billion, which would represent changes of +24.17% and +11.77%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Packaging Corp.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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Packaging Corp. is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Packaging Corp. is holding a Forward P/E ratio of 11.92. Its industry sports an average Forward P/E of 11.29, so we one might conclude that Packaging Corp. is trading at a premium comparatively.
Meanwhile, PKG's PEG ratio is currently 2.38. 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. PKG's industry had an average PEG ratio of 1.44 as of yesterday's close.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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