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

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Zacks Equity Research
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Procter & Gamble (PG) closed the most recent trading day at $135.11, moving -1.32% from the previous trading session. This change lagged the S&P 500's daily gain of 0.33%.

Prior to today's trading, shares of the world's largest consumer products maker had gained 6.42% over the past month. This has outpaced the Consumer Staples sector's gain of 3.09% and the S&P 500's gain of 4.77% in that time.

PG will be looking to display strength as it nears its next earnings release, which 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%. Meanwhile, our latest consensus estimate is calling for revenue of $17.84 billion, up 3.64% from the prior-year quarter.

PG's full-year Zacks Consensus Estimates are calling for earnings of $5.66 per share and revenue of $75.41 billion. These results would represent year-over-year changes of +10.55% and +6.29%, respectively.

Investors might also notice 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PG is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, PG is holding a Forward P/E ratio of 24.09. For comparison, its industry has an average Forward P/E of 22.96, which means PG is trading at a premium to the group.

It is also worth noting that PG currently 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. The Soap and Cleaning Materials industry currently had an average PEG ratio of 3.58 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 216, which puts it in the bottom 15% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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