Graphic Packaging (GPK) Moving On Heavy Volume In The Pre-Market Hours

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Graphic Packaging ( GPK) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Graphic Packaging as such a stock due to the following factors:

  • GPK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.3 million.
  • GPK traded 442,915 shares today in the pre-market hours as of 9:19 AM, representing 10.2% of its average daily volume.

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More details on GPK:

Graphic Packaging Holding Company, together with its subsidiaries, provides packaging solutions in the United States, Canada, Central/South America, Europe, and the Asia-Pacific. The company operates in two segments, Paperboard Packaging and Flexible Packaging. GPK has a PE ratio of 23.6. Currently there are 4 analysts that rate Graphic Packaging a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Graphic Packaging has been 2.9 million shares per day over the past 30 days. Graphic Packaging has a market cap of $3.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.93 and a short float of 1% with 0.40 days to cover. Shares are up 6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Graphic Packaging as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • GPK's revenue growth has slightly outpaced the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 5.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has slightly increased to $159.60 million or 9.46% when compared to the same quarter last year. In addition, GRAPHIC PACKAGING HOLDING CO has also modestly surpassed the industry average cash flow growth rate of 3.43%.
  • Powered by its strong earnings growth of 30.00% and other important driving factors, this stock has surged by 34.55% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • GRAPHIC PACKAGING HOLDING CO has improved earnings per share by 30.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GRAPHIC PACKAGING HOLDING CO reported lower earnings of $0.31 versus $0.71 in the prior year. This year, the market expects an improvement in earnings ($0.62 versus $0.31).
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Containers & Packaging industry average. The net income increased by 11.0% when compared to the same quarter one year prior, going from $40.10 million to $44.50 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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