Procter & Gamble (PG) closed the most recent trading day at $137.68, moving +1.51% from the previous trading session. This change lagged the S&P 500's 1.83% gain on the day. Elsewhere, the Dow gained 1.4%, while the tech-heavy Nasdaq added 0.09%.
Coming into today, shares of the world's largest consumer products maker had lost 6.42% in the past month. In that same time, the Consumer Staples sector lost 3.95%, while the S&P 500 lost 5.51%.
Procter & Gamble will be looking to display strength as it nears its next earnings release. On that day, Procter & Gamble is projected to report earnings of $1.57 per share, which would represent a year-over-year decline of 2.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.56 billion, up 1.11% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.94 per share and revenue of $81.36 billion, which would represent changes of +2.24% and +1.46%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Procter & Gamble. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Procter & Gamble is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Procter & Gamble's current valuation metrics, including its Forward P/E ratio of 22.84. Its industry sports an average Forward P/E of 22.84, so we one might conclude that Procter & Gamble is trading at a no noticeable deviation comparatively.
Meanwhile, PG's PEG ratio is currently 3.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PG's industry had an average PEG ratio of 3.54 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 187, putting it in the bottom 26% 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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