Procter & Gamble (PG) Gains As Market Dips: What You Should Know
Procter & Gamble (PG) closed at $157.67 in the latest trading session, marking a +1.42% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.91%. At the same time, the Dow lost 0.89%, and the tech-heavy Nasdaq lost 0.12%.
Prior to today's trading, shares of the world's largest consumer products maker had gained 6.07% over the past month. This has outpaced the Consumer Staples sector's loss of 0.35% and the S&P 500's gain of 1.55% in that time.
Investors will be hoping for strength from Procter & Gamble as it approaches 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.93 per share and revenue of $79.41 billion. These totals would mark changes of +4.77% and +4.33%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Procter & Gamble. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Procter & Gamble is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Procter & Gamble currently has a Forward P/E ratio of 26.24. For comparison, its industry has an average Forward P/E of 24.72, which means Procter & Gamble is trading at a premium to the group.
Also, we should mention that PG has a PEG ratio of 3.93. 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 4.41 as of yesterday's close.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 32% 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.
To follow PG in the coming trading sessions, be sure to utilize Zacks.com.
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