Procter & Gamble (PG) closed at $138.63 in the latest trading session, marking no change from the prior day. This change lagged the S&P 500's 0.52% gain on the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.21%.
Prior to today's trading, shares of the world's largest consumer products maker had gained 2.31% over the past month. This has outpaced the Consumer Staples sector's gain of 1.62% and the S&P 500's gain of 0.49% in that time.
Investors will be hoping for strength from PG as it approaches its next earnings release. On that day, PG is projected to report earnings of $1.41 per share, which would represent year-over-year growth of 2.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.21 billion, up 2.32% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.40 per share and revenue of $72.84 billion, which would represent changes of +5.47% and +2.67%, respectively, from the prior year.
Any recent changes to analyst estimates for PG should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PG is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, PG is currently trading at a Forward P/E ratio of 25.68. For comparison, its industry has an average Forward P/E of 24.81, which means PG is trading at a premium to the group.
It is also worth noting that PG currently has a PEG ratio of 3.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Soap and Cleaning Materials industry currently had an average PEG ratio of 3.86 as of yesterday's close.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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