PPL (PPL) closed at $35.71 in the latest trading session, marking a -1.08% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.38%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.62%.
The stock of energy and utility holding company has fallen by 0.77% in the past month, lagging the Utilities sector's gain of 1.54% and the S&P 500's gain of 1.61%.
Investors will be eagerly watching for the performance of PPL in its upcoming earnings disclosure. In that report, analysts expect PPL to post earnings of $0.36 per share. This would mark year-over-year growth of 12.5%. Alongside, our most recent consensus estimate is anticipating revenue of $2.18 billion, indicating a 7.5% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.95 per share and revenue of $9.78 billion, indicating changes of +7.73% and +8.21%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for PPL. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 shifted 0.02% downward. PPL presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, PPL is holding a Forward P/E ratio of 18.54. This valuation marks a premium compared to its industry average Forward P/E of 18.41.
We can additionally observe that PPL currently boasts a PEG ratio of 2.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Utility - Electric Power was holding an average PEG ratio of 2.73 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).