PPL (PPL) closed the latest trading day at $36.23, indicating a +0.28% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 4.84%. Elsewhere, the Dow lost 3.98%, while the tech-heavy Nasdaq lost 5.97%.
The energy and utility holding company's stock has climbed by 4.6% in the past month, exceeding the Utilities sector's gain of 2.06% and the S&P 500's loss of 4.7%.
Investors will be eagerly watching for the performance of PPL in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.55, signifying a 1.85% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.38 billion, up 3.45% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.82 per share and a revenue of $8.48 billion, demonstrating changes of +7.69% and +0.22%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for PPL. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% lower. PPL is currently a Zacks Rank #3 (Hold).
Looking at its valuation, PPL is holding a Forward P/E ratio of 19.83. For comparison, its industry has an average Forward P/E of 18.47, which means PPL is trading at a premium to the group.
Also, we should mention that PPL has a PEG ratio of 2.93. 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. As of the close of trade yesterday, the Utility - Electric Power industry held an average PEG ratio of 2.83.
The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 69, positioning it in the top 28% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PPL Corporation (PPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
