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

Procter & Gamble (PG) closed at $91.99 in the latest trading session, marking a +0.92% move from the prior day. The stock lagged the S&P 500's daily gain of 1.07%. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq gained 1.71%.

Prior to today's trading, shares of the world's largest consumer products maker had lost 1.75% over the past month. This has was narrower than the Consumer Staples sector's loss of 3.35% and lagged the S&P 500's loss of 0.58% 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 January 23, 2019. In that report, analysts expect PG to post earnings of $1.21 per share. This would mark year-over-year growth of 1.68%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.20 billion, down 1.11% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.42 per share and revenue of $66.86 billion, which would represent changes of +4.74% and +0.05%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for PG. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. PG is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, PG is holding a Forward P/E ratio of 20.64. Its industry sports an average Forward P/E of 20.27, so we one might conclude that PG is trading at a premium comparatively.

We can also see that PG currently has a PEG ratio of 2.96. 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 industry currently had an average PEG ratio of 3.13 as of yesterday's close.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% 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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