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Procter & Gamble (PG) Gains But Lags Market: What You Should Know

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Procter & Gamble (PG) closed at $149.02 in the latest trading session, marking a +1.05% move from the prior day. The stock lagged the S&P 500's daily gain of 1.32%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq lost 0.15%.

Prior to today's trading, shares of the world's largest consumer products maker had gained 3.13% over the past month. This has outpaced the Consumer Staples sector's loss of 0.71% and lagged the S&P 500's gain of 3.61% in that time.

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 $1.66 per share, which would represent year-over-year growth of 1.22%. Meanwhile, our latest consensus estimate is calling for revenue of $20.38 billion, up 3.23% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.93 per share and revenue of $79.41 billion, which would represent changes of +4.77% and +4.33%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Procter & Gamble. Recent revisions tend to reflect the latest 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Procter & Gamble is currently a Zacks Rank #3 (Hold).

In terms of valuation, Procter & Gamble is currently trading at a Forward P/E ratio of 24.89. This valuation marks a premium compared to its industry's average Forward P/E of 24.19.

We can also see that PG currently has a PEG ratio of 3.73. 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 was holding an average PEG ratio of 4.39 at yesterday's closing price.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 21% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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