PPL (PPL) closed at $36.63 in the latest trading session, marking a -1.48% move from the prior day. This change lagged the S&P 500's 0.55% gain on the day. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 0.91%.
The stock of energy and utility holding company has risen by 6.32% in the past month, lagging the Utilities sector's gain of 13.64% and overreaching the S&P 500's gain of 0.71%.
Market participants will be closely following the financial results of PPL in its upcoming release. The company's upcoming EPS is projected at $0.41, signifying a 20.59% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.35 billion, reflecting a 6.33% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.81 per share and revenue of $8.74 billion, indicating changes of +7.1% and 0%, respectively, compared to the previous 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. As such, positive estimate revisions reflect analyst optimism about the 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, PPL is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, PPL is currently trading at a Forward P/E ratio of 19.01. This signifies a premium in comparison to the average Forward P/E of 17.81 for its industry.
It is also worth noting that PPL currently has a PEG ratio of 2.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Utility - Electric Power industry held an average PEG ratio of 2.59.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 33% of all 250+ industries.
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.
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PPL Corporation (PPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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