Back to top

Image: Bigstock

PPL (PPL) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Read MoreHide Full Article

PPL (PPL - Free Report) closed the most recent trading day at $32.75, moving -0.94% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.17%. At the same time, the Dow lost 0.44%, and the tech-heavy Nasdaq lost 0.04%.

Prior to today's trading, shares of the energy and utility holding company had gained 2.64% over the past month. This has lagged the Utilities sector's gain of 4.73% and outpaced the S&P 500's gain of 1.25% in that time.

The upcoming earnings release of PPL will be of great interest to investors. On that day, PPL is projected to report earnings of $0.42 per share, which would represent a year-over-year decline of 2.33%. Our most recent consensus estimate is calling for quarterly revenue of $2.15 billion, up 5.36% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.72 per share and revenue of $8.22 billion, which would represent changes of +7.5% and -1.07%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for PPL. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 0.03% higher. PPL currently has a Zacks Rank of #2 (Buy).

From a valuation perspective, PPL is currently exchanging hands at a Forward P/E ratio of 19.24. This signifies a premium in comparison to the average Forward P/E of 17.9 for its industry.

We can also see that PPL currently has a PEG ratio of 2.82. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.85 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


PPL Corporation (PPL) - free report >>

Published in