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Procter & Gamble (PG) Gains But Lags Market: What You Should Know

Procter & Gamble (PG) closed the most recent trading day at $167.50, moving +0.43% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.77% for the day. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 0.95%.

The the stock of world's largest consumer products maker has fallen by 0.51% in the past month, leading the Consumer Staples sector's loss of 4.12% and undershooting the S&P 500's gain of 3.71%.

Market participants will be closely following the financial results of Procter & Gamble in its upcoming release. The company is forecasted to report an EPS of $1.37, showcasing no movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $20.81 billion, indicating a 1.27% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.55 per share and revenue of $84.32 billion, indicating changes of +11.02% and +2.82%, respectively, compared to the previous year.

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Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Procter & Gamble. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Procter & Gamble is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Procter & Gamble is presently trading at a Forward P/E ratio of 25.46. This signifies a premium in comparison to the average Forward P/E of 22.91 for its industry.

It's also important to note that PG currently trades at a PEG ratio of 3.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Soap and Cleaning Materials was holding an average PEG ratio of 3.19 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 48, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Procter & Gamble Company (The) (PG) : Free Stock Analysis Report

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