Posco (PKX) Gains But Lags Market: What You Should Know
In the latest trading session, Posco (PKX) closed at $77.06, marking a +0.3% move from the previous day. The stock lagged the S&P 500's daily gain of 0.36%.
Coming into today, shares of the steelmaker had gained 13.14% in the past month. In that same time, the Basic Materials sector gained 5.95%, while the S&P 500 gained 5.21%.
Investors will be hoping for strength from PKX as it approaches its next earnings release, which is expected to be April 26, 2021.
Investors might also notice recent changes to analyst estimates for PKX. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 10.8% higher. PKX is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that PKX has a Forward P/E ratio of 9.2 right now. This valuation marks a premium compared to its industry's average Forward P/E of 8.83.
Also, we should mention that PKX has a PEG ratio of 1.84. 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. The Steel - Producers industry currently had an average PEG ratio of 0.58 as of yesterday's close.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 3, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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