PPL (PPL) closed the most recent trading day at $37.15, moving +1.23% from the previous trading session. This change outpaced the S&P 500's 0.37% gain on the day. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 0.71%.
Shares of the energy and utility holding company witnessed a gain of 2.06% over the previous month, trailing the performance of the Utilities sector with its gain of 4.76%, and the S&P 500's gain of 4.26%.
The investment community will be paying close attention to the earnings performance of PPL in its upcoming release. The company is expected to report EPS of $0.48, up 14.29% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.19 billion, showing a 5.99% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.81 per share and a revenue of $8.68 billion, representing changes of +7.1% and +2.57%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PPL. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.09% downward. PPL is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, PPL is presently being traded at a Forward P/E ratio of 20.24. For comparison, its industry has an average Forward P/E of 18.95, which means PPL is trading at a premium to the group.
We can also see that PPL currently has a PEG ratio of 2.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Utility - Electric Power industry had an average PEG ratio of 2.79 as trading concluded yesterday.
The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 32% echelons of all 250+ industries.
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.
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PPL Corporation (PPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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