he Procter & Gamble Company
) is set to report fourth-quarter and full-year fiscal 2014 results
on Aug 1, before the market opens. Last quarter, it delivered
positive earnings surprise of 1.96%. Let's see how things are
shaping up for this announcement.
Factors to Consider This Quarter
Currency headwinds, rising commodity costs, increasing
competitive pressures, challenging consumer spending environment in
the U.S. and volatile market dynamics in other countries are
expected to hurt profits in the quarter.
However, accelerated productivity gains and cost savings, higher
pricing related to devaluation and lower tax rates should lend some
Our proven model does not conclusively show that P&G is
likely to beat earnings this quarter. That is because a stock needs
to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here, as you will see below.
The Earnings ESP for P&G is -1.10%.
P&G carries a Zacks Rank #4 (Sell). We caution against stocks
with Zacks Rank #4 and 5 (Sell-rated stocks) going into the
earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Other Stocks to Consider
Other consumer staples stocks that have both a positive Earnings
ESP and a favorable Zacks Rank are:
Colgate-Palmolive Co. (
), with an Earnings ESP of +1.37% and a Zacks Rank #2 (Buy).
The Clorox Company (
), with an Earnings ESP of +1.49% and a Zacks Rank #3 (Hold).
Treehouse Foods, Inc. (
), with an Earnings ESP of +1.21% and a Zacks Rank #1 (Strong
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PROCTER & GAMBL (PG): Free Stock Analysis
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