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PPL (PPL) Outperforms Broader Market: What You Need to Know

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PPL (PPL - Free Report) closed the most recent trading day at $32.46, moving +1.56% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.54%. Elsewhere, the Dow gained 0.72%, while the tech-heavy Nasdaq added 0.65%.

The the stock of energy and utility holding company has risen by 3.16% in the past month, lagging the Utilities sector's gain of 4.65% and the S&P 500's gain of 4.86%.

The investment community will be closely monitoring the performance of PPL in its forthcoming earnings report. The company is forecasted to report an EPS of $0.42, showcasing a 2.33% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.16 billion, showing a 5.75% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.72 per share and revenue of $8.16 billion. These totals would mark changes of +7.5% and -1.87%, 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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.15% higher. At present, PPL boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that PPL has a Forward P/E ratio of 18.61 right now. This indicates a premium in contrast to its industry's Forward P/E of 17.03.

We can also see that PPL currently has a PEG ratio of 2.73. 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. The Utility - Electric Power industry had an average PEG ratio of 2.81 as trading concluded yesterday.

The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 19% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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