PPL (PPL – Free Report) closed the latest trading day at $32.46, indicating a +0.22% change from the previous session’s end. The stock’s performance was ahead of the S&P 500’s daily loss of 0.43%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.9%.
Shares of the energy and utility holding company witnessed a loss of 5.95% over the previous month, beating the performance of the Utilities sector with its loss of 7.47% and underperforming the S&P 500’s loss of 1.98%.
The investment community will be closely monitoring the performance of PPL in its forthcoming earnings report. In that report, analysts expect PPL to post earnings of $0.39 per share. This would mark a year-over-year decline of 2.5%. Alongside, our most recent consensus estimate is anticipating revenue of $2.09 billion, indicating a 3.01% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.72 per share and revenue of $8.18 billion, indicating changes of +7.5% and -1.65%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PPL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. As of now, PPL holds a Zacks Rank of #3 (Hold).
From a valuation perspective, PPL is currently exchanging hands at a Forward P/E ratio of 18.87. This denotes a premium relative to the industry’s average Forward P/E of 16.45.
We can also see that PPL currently has a PEG ratio of 2.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. Utility – Electric Power stocks are, on average, holding a PEG ratio of 2.66 based on yesterday’s closing prices.
The Utility – Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
Financial Market Newsflash
No financial news published today. Check back later.
