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Are Investors Undervaluing Graphic Packaging (GPK) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Graphic Packaging (GPK - Free Report) . GPK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 14.23. This compares to its industry's average Forward P/E of 16.16. Over the past 52 weeks, GPK's Forward P/E has been as high as 16.69 and as low as 10.84, with a median of 13.52.
Investors will also notice that GPK has a PEG ratio of 0.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GPK's PEG compares to its industry's average PEG of 1.31. GPK's PEG has been as high as 0.98 and as low as 0.43, with a median of 0.54, all within the past year.
Another notable valuation metric for GPK is its P/B ratio of 2.58. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. GPK's current P/B looks attractive when compared to its industry's average P/B of 6.79. GPK's P/B has been as high as 2.68 and as low as 1.49, with a median of 1.98, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GPK has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.2.
Finally, we should also recognize that GPK has a P/CF ratio of 8. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.13. Over the past 52 weeks, GPK's P/CF has been as high as 8.32 and as low as 4.68, with a median of 6.76.
These are just a handful of the figures considered in Graphic Packaging's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GPK is an impressive value stock right now.
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Are Investors Undervaluing Graphic Packaging (GPK) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Graphic Packaging (GPK - Free Report) . GPK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 14.23. This compares to its industry's average Forward P/E of 16.16. Over the past 52 weeks, GPK's Forward P/E has been as high as 16.69 and as low as 10.84, with a median of 13.52.
Investors will also notice that GPK has a PEG ratio of 0.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GPK's PEG compares to its industry's average PEG of 1.31. GPK's PEG has been as high as 0.98 and as low as 0.43, with a median of 0.54, all within the past year.
Another notable valuation metric for GPK is its P/B ratio of 2.58. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. GPK's current P/B looks attractive when compared to its industry's average P/B of 6.79. GPK's P/B has been as high as 2.68 and as low as 1.49, with a median of 1.98, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GPK has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.2.
Finally, we should also recognize that GPK has a P/CF ratio of 8. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.13. Over the past 52 weeks, GPK's P/CF has been as high as 8.32 and as low as 4.68, with a median of 6.76.
These are just a handful of the figures considered in Graphic Packaging's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GPK is an impressive value stock right now.