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In the latest trading session, Procter & Gamble (PG) closed at $142.67, marking a -0.36% move from the previous day. This change lagged the S&P 500's daily gain of 0.22%.
Prior to today's trading, shares of the world's largest consumer products maker had gained 1.65% over the past month. This has outpaced the Consumer Staples sector's loss of 0.73% and lagged the S&P 500's gain of 1.86% in that time.
PG will be looking to display strength as it nears its next earnings release. In that report, analysts expect PG to post earnings of $1.58 per share. This would mark a year-over-year decline of 3.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.79 billion, up 2.47% from the year-ago period.
PG's full-year Zacks Consensus Estimates are calling for earnings of $5.93 per share and revenue of $78.92 billion. These results would represent year-over-year changes of +4.77% and +3.69%, respectively.
Investors might also notice recent changes to analyst estimates for PG. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 0.22% lower within the past month. PG is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that PG has a Forward P/E ratio of 24.14 right now. Its industry sports an average Forward P/E of 24.07, so we one might conclude that PG is trading at a premium comparatively.
Meanwhile, PG's PEG ratio is currently 3.45. 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. Soap and Cleaning Materials stocks are, on average, holding a PEG ratio of 4.01 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 250, putting it in the bottom 2% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Procter & Gamble Company The (PG) : Free Stock Analysis Report
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