U.S. Markets open in 7 hrs 55 mins

Should You Buy Procter & Gamble (PG) Ahead of Earnings?

Zacks Equity Research

Investors are always looking for stocks that are poised to beat at earnings season and The Procter & Gamble Company PG may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because Procter & Gamble is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for PG in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at $1.25 per share for PG, compared to a broader Zacks Consensus Estimate of $1.24 per share. This suggests that analysts have very recently bumped up their estimates for PG, giving the stock a Zacks Earnings ESP of +0.76% heading into earnings season.

Procter & Gamble Company (The) Price and EPS Surprise

Procter & Gamble Company (The) Price and EPS Surprise

Procter & Gamble Company (The) price-eps-surprise | Procter & Gamble Company (The) Quote

Why is this Important?

A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).

Given that PG has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clearly, recent earnings estimate revisions suggest that good things are ahead for Procter & Gamble, and that a beat might be in the cards for the upcoming report.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research