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

Zacks Equity Research
·3-min read

Procter & Gamble (PG) closed at $117.73 in the latest trading session, marking a -0.02% move from the prior day. This change lagged the S&P 500's daily gain of 0.43%. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq added 0.75%.

Investors will be hoping for strength from PG as it approaches its next earnings release. The company is expected to report EPS of $1, down 9.09% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.77 billion, down 1.9% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.96 per share and revenue of $70.02 billion, which would represent changes of +9.73% and +3.45%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for PG. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. PG currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, PG is holding a Forward P/E ratio of 23.76. Its industry sports an average Forward P/E of 23.8, so we one might conclude that PG is trading at a discount comparatively.

We can also see that PG currently has a PEG ratio of 3.3. 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. PG's industry had an average PEG ratio of 4 as of yesterday's close.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% 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.

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


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Zacks Investment Research