In the latest trading session, PPL (PPL) closed at $23.56, marking a +0.77% move from the previous day. This change outpaced the S&P 500’s 0.27% loss on the day. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq gained 0.14%.
Prior to today’s trading, shares of the energy and utility holding company had lost 6.18% over the past month. This has lagged the Utilities sector’s loss of 6.05% and the S&P 500’s loss of 2.86% in that time.
Investors will be hoping for strength from PPL as it approaches its next earnings release. In that report, analysts expect PPL to post earnings of $0.46 per share. This would mark year-over-year growth of 12.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.2 billion, up 3.23% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.58 per share and revenue of $7.97 billion. These totals would mark changes of +12.06% and +0.87%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PPL. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PPL is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that PPL has a Forward P/E ratio of 14.77 right now. This represents a premium compared to its industry’s average Forward P/E of 14.56.
Also, we should mention that PPL has a PEG ratio of 1.99. 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. PPL’s industry had an average PEG ratio of 2.63 as of yesterday’s close.
The Utility – Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.
You can find more information on all of these metrics, and much 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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