PPL (PPL) closed the last trading day at $27.22, indicating a -0.22% change from the close of the previous session. This move trailed the S&P 500’s daily gain of 1.11%. Elsewhere, the Dow saw an increase of 0.8%, while the technology-heavy Nasdaq appreciated by 1.24%.
Shares of the energy and utilities company witnessed a gain of 1.49% over the previous month, following the performance of the Utilities sector with its gain of 3.43% and outperforming the S&P 500’s gain of 0.48%.
The investment community will be closely monitoring PPL’s performance in its next earnings report. The company is expected to report EPS of $0.52, marking an 8.33% increase compared to the same quarter last year. At the same time, our most recent consensus estimate projects revenue of $2.48 billion, reflecting a 2.57% increase from the corresponding quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest that analysts expect earnings of $1.71 per share and revenue of $8.34 billion. These totals would mark changes of + 6.88% and + 0.32%, respectively, from last year.
Any recent changes to analyst ratings for PPL should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, upward revisions in ratings express analysts’ positivity toward the company’s business operations and its ability to generate profits.
Based on our research, we believe these valuation revisions are directly related to near-team stock movements. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and delivers a clear, reasonable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, verified externally, with #1 ranked stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate moved 0.44% lower in the past month. PPL currently has a Zacks Rank of number 3 (Hold).
In terms of valuation, PPL is currently trading with a Forward P/E ratio of 15.98. Its industry has an average Forward P/E of 15.14, so one could conclude that PPL trades at a premium in comparison.
Investors should also note that PPL has a PEG ratio of 2.47 right now. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes into account the company’s expected earnings growth. The average PEG ratio for the Utility – Electric Power industry stood at 2.56 at the close of the market yesterday.
The Utilities – Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 144, which places it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst based on the average Zacks Rank of the individual companies in each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock movement metrics during the next trading sessions.
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PPL Corporation (PPL): Free Analysis Report
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