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Sonoco (SON) Dips More Than Broader Markets: What You Should Know
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Sonoco (SON - Free Report) closed at $55.98 in the latest trading session, marking a -0.36% move from the prior day. This move lagged the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq added 0.03%.
Prior to today's trading, shares of the packaging maker had lost 12.49% over the past month. This has lagged the Industrial Products sector's loss of 11.75% and the S&P 500's loss of 9.7% in that time.
Investors will be hoping for strength from Sonoco as it approaches its next earnings release. On that day, Sonoco is projected to report earnings of $1.43 per share, which would represent year-over-year growth of 57.14%. Meanwhile, our latest consensus estimate is calling for revenue of $1.92 billion, up 35.82% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.33 per share and revenue of $7.46 billion, which would represent changes of +78.31% and +33.47%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Sonoco. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Sonoco is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Sonoco is currently trading at a Forward P/E ratio of 8.88. Its industry sports an average Forward P/E of 10.26, so we one might conclude that Sonoco is trading at a discount comparatively.
Investors should also note that SON has a PEG ratio of 1.78 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Containers - Paper and Packaging industry currently had an average PEG ratio of 1.76 as of yesterday's close.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% 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.
To follow SON in the coming trading sessions, be sure to utilize Zacks.com.
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Sonoco (SON) Dips More Than Broader Markets: What You Should Know
Sonoco (SON - Free Report) closed at $55.98 in the latest trading session, marking a -0.36% move from the prior day. This move lagged the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq added 0.03%.
Prior to today's trading, shares of the packaging maker had lost 12.49% over the past month. This has lagged the Industrial Products sector's loss of 11.75% and the S&P 500's loss of 9.7% in that time.
Investors will be hoping for strength from Sonoco as it approaches its next earnings release. On that day, Sonoco is projected to report earnings of $1.43 per share, which would represent year-over-year growth of 57.14%. Meanwhile, our latest consensus estimate is calling for revenue of $1.92 billion, up 35.82% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.33 per share and revenue of $7.46 billion, which would represent changes of +78.31% and +33.47%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Sonoco. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Sonoco is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Sonoco is currently trading at a Forward P/E ratio of 8.88. Its industry sports an average Forward P/E of 10.26, so we one might conclude that Sonoco is trading at a discount comparatively.
Investors should also note that SON has a PEG ratio of 1.78 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Containers - Paper and Packaging industry currently had an average PEG ratio of 1.76 as of yesterday's close.
The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% 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.
To follow SON in the coming trading sessions, be sure to utilize Zacks.com.