Procter & Gamble (PG) closed the most recent trading day at $96.64, moving +0.16% from the previous trading session. This change outpaced the S&P 500's 1.91% loss on the day. At the same time, the Dow lost 2.02%, and the tech-heavy Nasdaq lost 2.26%.
Prior to today's trading, shares of the world's largest consumer products maker had gained 2.83% over the past month. This has outpaced the Consumer Staples sector's loss of 1.46% and the S&P 500's loss of 2.51% in that time.
Investors will be hoping for strength from PG as it approaches its next earnings release, which is expected to be January 22, 2019. The company is expected to report EPS of $1.21, up 1.68% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.20 billion, down 1.11% from the year-ago period.
PG's full-year Zacks Consensus Estimates are calling for earnings of $4.41 per share and revenue of $66.88 billion. These results would represent year-over-year changes of +4.5% and +0.08%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. PG is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note PG's current valuation metrics, including its Forward P/E ratio of 21.87. Its industry sports an average Forward P/E of 21.98, 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 3.16. 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. The Soap and Cleaning Materials was holding an average PEG ratio of 3.38 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 85, putting it in the top 33% 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.