Procter & Gamble (PG) Outpaces Stock Market Gains: What You Should Know
Procter & Gamble (PG) closed at $136.74 in the latest trading session, marking a +0.18% move from the prior day. This move outpaced the S&P 500's daily gain of 0.15%.
Coming into today, shares of the world's largest consumer products maker had gained 7.18% in the past month. In that same time, the Consumer Staples sector gained 5.75%, while the S&P 500 gained 6.19%.
Wall Street will be looking for positivity from PG as it approaches its next earnings report date. This is expected to be April 20, 2021. On that day, PG is projected to report earnings of $1.19 per share, which would represent year-over-year growth of 1.71%. Our most recent consensus estimate is calling for quarterly revenue of $17.84 billion, up 3.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.66 per share and revenue of $75.41 billion. These totals would mark changes of +10.55% and +6.29%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PG. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. PG is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note PG's current valuation metrics, including its Forward P/E ratio of 24.11. This represents a premium compared to its industry's average Forward P/E of 23.47.
Also, we should mention that PG has a PEG ratio of 3.44. 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. Soap and Cleaning Materials stocks are, on average, holding a PEG ratio of 3.6 based on yesterday's closing prices.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 227, putting it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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