Procter & Gamble (PG) closed at $122.48 in the latest trading session, marking a -0.33% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.56%. At the same time, the Dow lost 1.39%, and the tech-heavy Nasdaq gained 0.53%.
Coming into today, shares of the world's largest consumer products maker had gained 3.07% in the past month. In that same time, the Consumer Staples sector lost 4.1%, while the S&P 500 lost 1.79%.
Wall Street will be looking for positivity from PG as it approaches its next earnings report date. This is expected to be July 30, 2020. The company is expected to report EPS of $1, down 9.09% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $16.77 billion, down 1.9% from the prior-year quarter.
Any recent changes to analyst estimates for PG should also be noted by investors. 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. PG is currently a Zacks Rank #2 (Buy).
In terms of valuation, PG is currently trading at a Forward P/E ratio of 23.54. Its industry sports an average Forward P/E of 24.16, so we one might conclude that PG is trading at a discount comparatively.
We can also see that PG currently has a PEG ratio of 3.27. 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 4.1 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 34, putting it in the top 14% 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.
To follow PG in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Procter Gamble Company The (PG) : Free Stock Analysis Report
To read this article on Zacks.com click here.