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PPL (PPL) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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PPL (PPL - Free Report) closed the latest trading day at $34.99, indicating a +0.49% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 1.08%. At the same time, the Dow added 0.92%, and the tech-heavy Nasdaq gained 1.41%.

Prior to today's trading, shares of the energy and utility holding company had gained 1.81% over the past month. This has outpaced the Utilities sector's gain of 1.22% and the S&P 500's loss of 8.26% in that time.

The investment community will be closely monitoring the performance of PPL in its forthcoming earnings report. The company is predicted to post an EPS of $0.56, indicating a 3.7% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.39 billion, showing a 3.58% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.82 per share and revenue of $8.46 billion, indicating changes of +7.69% and 0%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 0.18% lower. PPL is currently a Zacks Rank #3 (Hold).

Digging into valuation, PPL currently has a Forward P/E ratio of 19.11. This represents a premium compared to its industry's average Forward P/E of 18.16.

One should further note that PPL currently holds a PEG ratio of 2.83. 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 2.66.

The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 32% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.


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