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

Zacks Equity Research
PerkinElmer (PKI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Procter & Gamble (PG) closed at $109.38 in the latest trading session, marking a +0.61% move from the prior day. This move outpaced the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.05%, while the tech-heavy Nasdaq lost 0.01%.

Heading into today, shares of the world's largest consumer products maker had gained 2.46% over the past month, outpacing the Consumer Staples sector's gain of 1.49% and the S&P 500's gain of 0.34% in that time.

Investors will be hoping for strength from PG as it approaches its next earnings release. The company is expected to report EPS of $1.06, up 12.77% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $16.86 billion, up 2.14% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.48 per share and revenue of $67.45 billion, which would represent changes of +6.16% and +0.92%, respectively, from the prior year.

Any recent changes to analyst estimates for PG should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection 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 24.28. This valuation marks a premium compared to its industry's average Forward P/E of 23.03.

Meanwhile, PG's PEG ratio is currently 3.5. 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. The Soap and Cleaning Materials was holding an average PEG ratio of 4.1 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 75, putting it in the top 30% 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.

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


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