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Procter & Gamble (PG) Gains As Market Dips: What You Should Know

Zacks Equity Research

In the latest trading session, Procter & Gamble (PG) closed at $117.56, marking a +0.31% move from the previous day. This change outpaced the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq lost 0.3%.

Heading into today, shares of the world's largest consumer products maker had lost 3.27% over the past month, lagging the Consumer Staples sector's loss of 1.8% and the S&P 500's loss of 0.25% in that time.

Wall Street will be looking for positivity from PG as it approaches its next earnings report date. This is expected to be October 22, 2019. On that day, PG is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 10.71%. Meanwhile, our latest consensus estimate is calling for revenue of $17.49 billion, up 4.78% from the prior-year quarter.

PG's full-year Zacks Consensus Estimates are calling for earnings of $4.84 per share and revenue of $70.15 billion. These results would represent year-over-year changes of +7.08% and +3.64%, respectively.

Investors might also notice recent changes to analyst estimates for PG. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PG is currently a Zacks Rank #3 (Hold).

Investors should also note PG's current valuation metrics, including its Forward P/E ratio of 24.19. This valuation marks a premium compared to its industry's average Forward P/E of 22.38.

Meanwhile, PG's PEG ratio is currently 3.4. 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 3.95 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 213, putting it in the bottom 17% 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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