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Greif (GEF) Stock Sinks As Market Gains: What You Should Know

Greif (GEF) closed the most recent trading day at $72.34, moving -0.19% from the previous trading session. This move lagged the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq lost 0.46%.

Prior to today's trading, shares of the industrial packaging company had gained 14.32% over the past month. This has lagged the Industrial Products sector's gain of 17.67% and outpaced the S&P 500's gain of 12.15% in that time.

Investors will be hoping for strength from Greif as it approaches its next earnings release, which is expected to be August 31, 2022. On that day, Greif is projected to report earnings of $1.98 per share, which would represent year-over-year growth of 2.59%. Our most recent consensus estimate is calling for quarterly revenue of $1.63 billion, up 9.4% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.66 per share and revenue of $6.53 billion. These totals would mark changes of +36.79% and +17.49%, respectively, from last year.

Any recent changes to analyst estimates for Greif should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Greif is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, Greif is holding a Forward P/E ratio of 9.47. Its industry sports an average Forward P/E of 12.96, so we one might conclude that Greif is trading at a discount comparatively.

Also, we should mention that GEF has a PEG ratio of 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Containers - Paper and Packaging stocks are, on average, holding a PEG ratio of 1.93 based on yesterday's closing prices.

The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow GEF in the coming trading sessions, be sure to utilize Zacks.com.


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Greif, Inc. (GEF): Free Stock Analysis Report
 
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