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PPL (PPL) Beats Stock Market Upswing: What Investors Need to Know

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PPL (PPL - Free Report) ended the recent trading session at $36.72, demonstrating a +1.55% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq added 0.44%.

Shares of the energy and utility holding company witnessed a loss of 1.09% over the previous month, trailing the performance of the Utilities sector with its gain of 0.26%, and the S&P 500's gain of 2.72%.

The investment community will be closely monitoring the performance of PPL in its forthcoming earnings report. The company is expected to report EPS of $0.48, up 14.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.19 billion, up 6.11% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.81 per share and a revenue of $8.67 billion, signifying shifts of +7.1% and +2.5%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for PPL. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.09% fall in the Zacks Consensus EPS estimate. PPL is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, PPL is currently trading at a Forward P/E ratio of 19.94. This signifies a premium in comparison to the average Forward P/E of 17.97 for its industry.

We can additionally observe that PPL currently boasts a PEG ratio of 2.6. 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. By the end of yesterday's trading, the Utility - Electric Power industry had an average PEG ratio of 2.73.

The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 37% of all industries, numbering over 250.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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