Stock of the Day

December 20, 2021

Greif (GEF)

$82.70
-$1.38 (-1.6%)
Market Cap: $3.88B

About Greif

Greif, Inc. engages in the production and sale of industrial packaging products and services worldwide. The company operates through Global Industrial Packaging; Paper Packaging & Services; and Land Management segments. The Global Industrial Packaging segment produces and sells industrial packaging products, including steel, fiber, and plastic drums; rigid and flexible intermediate bulk containers; closure systems for industrial packaging products; transit protection products; water bottles, and remanufactured and reconditioned industrial containers; and various services, such as container life cycle management, filling, logistics, warehousing, and other packaging services to chemicals, paints and pigments, food and beverage, petroleum, industrial coatings, agriculture, pharmaceuticals, mineral product, and other industries. The Paper Packaging & Services segment produces and sells containerboards, corrugated sheets and containers, and other corrugated and specialty products to customers in the packaging, automotive, food, and building products markets; and produces and sells coated and uncoated recycled paperboard, and recycled fiber. This segment's corrugated container products are used to ship various products, such as home appliances, small machinery, grocery products, automotive components, books, and furniture, as well as various other applications. The Land Management segment engages in harvesting and regeneration of timber properties; and sale of timberland and special use properties. As of October 31, 2023, this segment owned approximately 175,000 acres of timber properties in the southeastern United States. The company was formerly known as Greif Bros. Corporation and changed its name to Greif, Inc. in 2001. Greif, Inc. was founded in 1877 and is headquartered in Delaware, Ohio.

Today's Trend

Greif, Inc. (NYSE: GEF) received mixed earnings-estimate revisions from Zacks Research, which may be contributing to pressure on the shares despite several upward forecast changes.

  • Zacks raised its FY2026 EPS estimate to $4.31 from $3.84, above the current-year consensus of $4.18. The firm also increased its FY2028 forecast to $4.65 from $4.48, Q1 2028 to $0.73 from $0.53, Q2 2027 to $1.08 from $1.06 and Q3 2027 to $1.43 from $1.41. These changes suggest improved expectations for several future periods.
  • Zacks lifted its Q3 2028 EPS estimate to $1.45 from $1.28, reinforcing the firm’s longer-term earnings optimism.
  • Zacks maintained a “Hold” rating on Greif, indicating that the revised forecasts have not yet changed the firm’s overall investment view.
  • The revisions were weaker for nearer- and mid-term periods: FY2027 EPS was cut to $4.15 from $4.45, Q4 2026 to $1.12 from $1.18, Q1 2027 to $0.72 from $0.73 and Q2 2028 to $1.05 from $1.18. The largest reduction was to Q4 2027 EPS, lowered to $0.91 from $1.24.

Overall, the news is mixed but leans cautiously negative because several estimates for upcoming quarters and FY2027 were reduced, potentially raising concerns about near-term earnings momentum. Greif recently reported stronger-than-expected quarterly results, including $1.61 in EPS versus an $1.11 consensus estimate and 3.5% year-over-year revenue growth. However, with the stock trading near its 52-week high and at approximately 27 times earnings, investors may be particularly sensitive to any downward revisions.

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