Procter & Gamble (PG) Stock Sinks As Market Gains: What You Should Know
Procter & Gamble (PG) closed the most recent trading day at $124.50, moving -0.47% from the previous trading session. This move lagged the S&P 500's daily gain of 0.91%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 0.59%.
Heading into today, shares of the world's largest consumer products maker had gained 5.89% over the past month, outpacing the Consumer Staples sector's gain of 2.9% and the S&P 500's gain of 5.26% in that time.
Wall Street will be looking for positivity from PG as it approaches its next earnings report date. This is expected to be July 30, 2020. In that report, analysts expect PG to post earnings of $1 per share. This would mark a year-over-year decline of 9.09%. Our most recent consensus estimate is calling for quarterly revenue of $16.77 billion, down 1.9% from the year-ago period.
Investors should also note any recent changes to analyst estimates for PG. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 0.17% higher. PG currently has a Zacks Rank of #2 (Buy).
Investors should also note PG's current valuation metrics, including its Forward P/E ratio of 23.93. This represents a discount compared to its industry's average Forward P/E of 24.47.
It is also worth noting that PG currently has a PEG ratio of 3.32. 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. Soap and Cleaning Materials stocks are, on average, holding a PEG ratio of 4.2 based on yesterday's closing prices.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.