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PPL (PPL) ended the recent trading session at $31.68, demonstrating a -0.16% swing from the preceding day's closing price. This change lagged the S&P 500's 0.16% gain on the day. Meanwhile, the Dow experienced a rise of 0.86%, and the technology-dominated Nasdaq saw a decrease of 0.38%.
Coming into today, shares of the energy and utility holding company had lost 1.73% in the past month. In that same time, the Utilities sector lost 7.63%, while the S&P 500 lost 2.2%.
Analysts and investors alike will be keeping a close eye on the performance of PPL in its upcoming earnings disclosure. The company is expected to report EPS of $0.39, down 2.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.09 billion, up 3.01% from the year-ago period.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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. The Zacks Consensus EPS estimate has moved 0.4% higher within the past month. PPL currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, PPL is currently exchanging hands at a Forward P/E ratio of 17.31. This signifies a premium in comparison to the average Forward P/E of 16.14 for its industry.
We can also see that PPL currently has a PEG ratio of 2.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Utility - Electric Power industry had an average PEG ratio of 2.52.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 42% 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.