GPK - Graphic Packaging: Still A Solid Prospect

2024-01-29 03:07:30 ET

Summary

• Graphic Packaging Holding has achieved a return of 28.4% over a year and three months, falling short of the S&P 500's 34.5% rise.
• Despite recent disappointing financial data, shares of Graphic Packaging remain cheap and the company is expected to outperform the broader market.
• The company has a strong presence in the packaging industry, particularly in the Americas, and is making investments for future growth.

Over the span of a year and three months, a return of 28.4% is objectively good. Historically speaking, the market achieves a return of around 11% to 12% annum. But when I rate a company a ‘buy’, I am not always looking at an objectively good return. Rather, that rating reflects my belief that the company in question should outperform the broader market for the foreseeable future. And although Graphic Packaging Holding Co. ( GPK ) achieved the aforementioned return since I last wrote about it in a bullish article published in October of 2022, it has fallen short of the 34.5% rise seen by the S&P 500 over the same window of time....

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