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Procter & Gamble (PG) Gains As Market Dips: What You Should Know

Procter & Gamble (PG) closed the most recent trading day at $124.88, moving +0.56% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.32%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.4%.

Prior to today's trading, shares of the world's largest consumer products maker had gained 3.82% over the past month. This has outpaced the Consumer Staples sector's gain of 2.59% and the S&P 500's gain of 2.51% in that time.

PG will be looking to display strength as it nears its next earnings release. On that day, PG is projected to report earnings of $1.37 per share, which would represent year-over-year growth of 9.6%. Meanwhile, our latest consensus estimate is calling for revenue of $18.32 billion, up 5.07% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.94 per share and revenue of $70.45 billion. These totals would mark changes of +9.29% and +4.09%, respectively, from last year.

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Any recent changes to analyst estimates for PG should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% 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 25.12. For comparison, its industry has an average Forward P/E of 22.91, which means PG is trading at a premium to the group.

Investors should also note that PG has a PEG ratio of 3.36 right now. 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 4.11 based on yesterday's closing prices.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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