Procter & Gamble (PG) Gains But Lags Market: What You Should Know
In the latest trading session, Procter & Gamble (PG) closed at $137.58, marking a +0.01% move from the previous day. The stock lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq gained 1.54%.
Coming into today, shares of the world's largest consumer products maker had lost 1.76% in the past month. In that same time, the Consumer Staples sector lost 0.97%, while the S&P 500 lost 4.07%.
Investors will be hoping for strength from Procter & Gamble as it approaches its next earnings release. On that day, Procter & Gamble is projected to report earnings of $1.32 per share, which would represent a year-over-year decline of 0.75%. Meanwhile, our latest consensus estimate is calling for revenue of $19.32 billion, down 0.32% from the prior-year quarter.
PG's full-year Zacks Consensus Estimates are calling for earnings of $5.84 per share and revenue of $80.59 billion. These results would represent year-over-year changes of +0.52% and +0.5%, respectively.
It is also important to note the recent changes to analyst estimates for Procter & Gamble. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. Procter & Gamble is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Procter & Gamble is holding a Forward P/E ratio of 23.58. This represents a premium compared to its industry's average Forward P/E of 23.08.
Also, we should mention that PG has a PEG ratio of 3.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PG's industry had an average PEG ratio of 3.64 as of yesterday's close.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
