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Procter & Gamble (PG) Dips More Than Broader Markets: What You Should Know

Procter & Gamble (PG) closed at $135.51 in the latest trading session, marking a -0.66% move from the prior day. This move lagged the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.23%, while the tech-heavy Nasdaq added 0.54%.

Heading into today, shares of the world's largest consumer products maker had lost 3.98% over the past month, lagging the Consumer Staples sector's gain of 5.95% and the S&P 500's gain of 3.5% in that time.

Wall Street will be looking for positivity from PG as it approaches its next earnings report date. On that day, PG is projected to report earnings of $1.50 per share, which would represent year-over-year growth of 5.63%. Our most recent consensus estimate is calling for quarterly revenue of $18.99 billion, up 4.1% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.55 per share and revenue of $73.94 billion. These totals would mark changes of +8.4% and +4.21%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for PG. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. PG is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that PG has a Forward P/E ratio of 24.6 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 24.6.

Investors should also note that PG has a PEG ratio of 3.25 right now. 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 4.25 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 102, putting it in the top 40% 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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