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Berry Global (BERY) Gains But Lags Market: What You Should Know

Berry Global (BERY) closed the most recent trading day at $59.19, moving +1.35% from the previous trading session. This move lagged the S&P 500's daily gain of 2.24%. Elsewhere, the Dow gained 1.55%, while the tech-heavy Nasdaq added 0.44%.

Prior to today's trading, shares of the packaging company had lost 7.96% over the past month. This has lagged the Industrial Products sector's loss of 3.2% and the S&P 500's loss of 4.46% in that time.

Investors will be hoping for strength from Berry Global as it approaches its next earnings release. In that report, analysts expect Berry Global to post earnings of $1.80 per share. This would mark year-over-year growth of 13.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.77 billion, up 11.81% from the year-ago period.

BERY's full-year Zacks Consensus Estimates are calling for earnings of $7.30 per share and revenue of $15 billion. These results would represent year-over-year changes of +1.25% and +8.32%, respectively.

Investors should also note any recent changes to analyst estimates for Berry Global. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Berry Global is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Berry Global currently has a Forward P/E ratio of 8. For comparison, its industry has an average Forward P/E of 14.11, which means Berry Global is trading at a discount to the group.

We can also see that BERY currently has a PEG ratio of 0.8. 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. The Containers - Paper and Packaging was holding an average PEG ratio of 1.7 at yesterday's closing price.

The Containers - Paper and Packaging industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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