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PPL (PPL) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, PPL (PPL) closed at $29.09, marking a +0.31% move from the previous day.

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This story originally appeared on Zacks

In the latest trading session, PPL (PPL) closed at $29.09, marking a +0.31% move from the previous day. This change outpaced the S&P 500's 0.18% gain on the day.

- Zacks

Prior to today's trading, shares of the energy and utility holding company had gained 2.26% over the past month. This has lagged the Utilities sector's gain of 2.43% and the S&P 500's gain of 2.96% in that time.

Investors will be hoping for strength from PPL as it approaches its next earnings release, which is expected to be November 4, 2021. On that day, PPL is projected to report earnings of $0.35 per share, which would represent a year-over-year decline of 39.66%.

PPL's full-year Zacks Consensus Estimates are calling for earnings of $1.18 per share and revenue of $6.26 billion. These results would represent year-over-year changes of -50.83% and -10.67%, respectively.

Any recent changes to analyst estimates for PPL 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PPL is currently sporting a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, PPL is holding a Forward P/E ratio of 24.58. For comparison, its industry has an average Forward P/E of 18.61, which means PPL is trading at a premium to the group.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% 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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