In the latest trading session, Procter & Gamble (PG) closed at $145.52, marking a -1.55% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.79%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 1.38%.
Heading into today, shares of the world's largest consumer products maker had gained 0.56% over the past month, lagging the Consumer Staples sector's gain of 2.5% and the S&P 500's gain of 0.87%.
Analysts and investors alike will be keeping a close eye on the performance of Procter & Gamble in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.88, showcasing no movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $22.34 billion, showing a 2.08% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.01 per share and revenue of $86.93 billion, indicating changes of +2.64% and +3.14%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Procter & Gamble. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. At present, Procter & Gamble boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Procter & Gamble is at present trading with a Forward P/E ratio of 21.1. This valuation marks a discount compared to its industry average Forward P/E of 21.44.
Also, we should mention that PG has a PEG ratio of 4.97. 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 average PEG ratio for the Consumer Products - Staples industry stood at 2.74 at the close of the market yesterday.
The Consumer Products - Staples industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 196, positioning it in the bottom 21% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
