Clearwater Paper (CLW) may very well be a stable selection for buyers given the corporate's remarka
Clearwater Paper (CLW) may very well be a stable selection for buyers given the corporate’s remarkably bettering earnings outlook. Whereas the inventory has been a powerful performer recently, this pattern may proceed since analysts are nonetheless elevating their earnings estimates for the corporate.
The rising pattern in estimate revisions, which is a results of rising analyst optimism on the earnings prospects of this maker of pulp-based merchandise, ought to get mirrored in its inventory value. In any case, empirical analysis exhibits a powerful correlation between traits in earnings estimate revisions and near-term inventory value actions. Our inventory score software — the Zacks Rank — is principally constructed on this perception.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Robust Purchase) to a Zacks Rank #5 (Robust Promote), has a formidable externally-audited monitor document of outperformance, with Zacks #1 Ranked shares producing a median annual return of +25% since 2008.
For Clearwater Paper, there was sturdy settlement among the many overlaying analysts in elevating earnings estimates, which has helped push consensus estimates significantly larger for the following quarter and full yr.
The chart under exhibits the evolution of ahead 12-month Zacks Consensus EPS estimate:
12 Month EPS
Present-Quarter Estimate Revisions
The earnings estimate of $1.62 per share for the present quarter represents a change of +337.84% from the quantity reported a yr in the past.
Over the past 30 days, one estimate has moved larger for Clearwater Paper in comparison with no unfavourable revisions. Consequently, the Zacks Consensus Estimate has elevated 79.01%.
Present-12 months Estimate Revisions
The corporate is predicted to earn $5.44 per share for the total yr, which represents a change of +2265.22% from the prior-year quantity.
There was an encouraging pattern in estimate revisions for the present yr as properly. Over the previous month, one estimate has moved up for Clearwater Paper versus no unfavourable revisions. This has pushed the consensus estimate 14.77% larger.
Favorable Zacks Rank
The promising estimate revisions have helped Clearwater Paper earn a Zacks Rank #1 (Robust Purchase). The Zacks Rank is a tried-and-tested score software that helps buyers successfully harness the facility of earnings estimate revisions and make the fitting funding determination. You’ll be able to see the whole checklist of right now’s Zacks #1 Rank (Robust Purchase) shares right here.
Our analysis exhibits that shares with Zacks Rank #1 (Robust Purchase) and a couple of (Purchase) considerably outperform the S&P 500.
Backside Line
Whereas sturdy estimate revisions for Clearwater Paper have attracted first rate investments and pushed the inventory 5.3% larger over the previous 4 weeks, additional upside should still be left within the inventory. So, it’s possible you’ll contemplate including it to your portfolio instantly.
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Clearwater Paper Company (CLW): Free Inventory Evaluation Report
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Zacks Funding Analysis
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.