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

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Procter & Gamble (PG - Free Report) closed the most recent trading day at $128.51, moving +1.79% from the previous trading session. This move lagged the S&P 500's daily gain of 2.59%. At the same time, the Dow added 2.66%, and the tech-heavy Nasdaq gained 0.07%.

Prior to today's trading, shares of the world's largest consumer products maker had lost 7.95% over the past month. This has was narrower than the Consumer Staples sector's loss of 8.02% and the S&P 500's loss of 9.22% in that time.

Procter & Gamble will be looking to display strength as it nears its next earnings release, which is expected to be October 19, 2022. The company is expected to report EPS of $1.23, down 23.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.56 billion, up 1.11% from the year-ago period.

PG's full-year Zacks Consensus Estimates are calling for earnings of $5.94 per share and revenue of $81.36 billion. These results would represent year-over-year changes of +2.24% and +1.46%, respectively.

It is also important to note the recent changes to analyst estimates for Procter & Gamble. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Procter & Gamble is currently a Zacks Rank #3 (Hold).

Digging into valuation, Procter & Gamble currently has a Forward P/E ratio of 21.25. For comparison, its industry has an average Forward P/E of 21.25, which means Procter & Gamble is trading at a no noticeable deviation to the group.

Investors should also note that PG has a PEG ratio of 3.24 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 3.11 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 94, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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