Bear of the Day: Graphic Packaging Holding Company (GPK)

From Nasdaq: 2025-02-27 04:00:00

Graphic Packaging Holding Company, GPK, reported lower-than-expected earnings and provided disappointing guidance due to a steady decline over the past year. The company’s revenue fell by 7% in 2024, with adjusted earnings dropping from $2.91 to $2.49 per share. CEO Michael Doss cited challenges in the industry and customer behavior.

Despite challenges, Graphic Packaging’s long-term outlook remains intact, with a 10% increase in quarterly dividend effective Q1 2025. However, the stock has underperformed, rising only 14% in the past two years compared to the S&P 500’s 52% increase. Investors are advised to wait for upbeat earnings guidance before considering GPK stock.

Zacks Investment Research has identified Graphic Packaging as a stock to watch, with potential for significant growth in 2024. The company’s recent struggles have led to a Zacks Rank #5 (Strong Sell), but long-term prospects remain positive. For more stock recommendations and analysis, visit Zacks.com.



Read more at Nasdaq: Bear of the Day: Graphic Packaging Holding Company (GPK)