Procter & Gamble (PG) Stock Sinks As Market Gains: What You Should Know
Procter & Gamble (PG) closed the most recent trading day at $109.60, moving -1.25% from the previous trading session. This move lagged the S&P 500's daily gain of 0.97%. At the same time, the Dow added 1.35%, and the tech-heavy Nasdaq gained 1.39%.
Prior to today's trading, shares of the world's largest consumer products maker had gained 3.41% over the past month. This has outpaced the Consumer Staples sector's gain of 1.05% and the S&P 500's gain of 0.64% in that time.
Investors will be hoping for strength from PG as it approaches its next earnings release. In that report, analysts expect PG to post earnings of $1.06 per share. This would mark year-over-year growth of 12.77%. Meanwhile, our latest consensus estimate is calling for revenue of $16.86 billion, up 2.14% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.48 per share and revenue of $67.45 billion. These totals would mark changes of +6.16% and +0.92%, respectively, from last year.
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.
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.
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 currently has a Zacks Rank of #3 (Hold).
Investors should also note PG's current valuation metrics, including its Forward P/E ratio of 24.79. This represents a premium compared to its industry's average Forward P/E of 23.23.
Meanwhile, PG's PEG ratio is currently 3.57. 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. PG's industry had an average PEG ratio of 4.08 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 79, putting it in the top 31% 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.
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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