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

Zacks Equity Research

Procter & Gamble (PG) closed at $113.85 in the latest trading session, marking a -1.26% move from the prior day. This move lagged the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, added 0.58%.

Heading into today, shares of the world's largest consumer products maker had gained 2.64% over the past month, outpacing the Consumer Staples sector's gain of 0.95% and the S&P 500's gain of 1.36% in that time.

PG will be looking to display strength as it nears its next earnings release, which is expected to be July 30, 2019. On that day, PG is projected to report earnings of $1.06 per share, which would represent year-over-year growth of 12.77%. Our most recent consensus estimate is calling for quarterly revenue of $16.87 billion, up 2.24% from the year-ago period.

It is also important to note the recent changes to analyst estimates for PG. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% lower. 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 24.3. This valuation marks a premium compared to its industry's average Forward P/E of 23.22.

We can also see that PG currently has a PEG ratio of 3.5. 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. PG's industry had an average PEG ratio of 4.13 as of yesterday's close.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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