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

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In the latest trading session, Procter & Gamble (PG - Free Report) closed at $125.07, marking a -0.14% move from the previous day. This move lagged the S&P 500's daily gain of 0.17%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, lost 0.81%.

Heading into today, shares of the world's largest consumer products maker had gained 6.36% over the past month, outpacing the Consumer Staples sector's gain of 0.5% and the S&P 500's gain of 5.15% in that time.

Investors will be hoping for strength from PG as it approaches its next earnings release, which is expected to be July 30, 2020. In that report, analysts expect PG to post earnings of $1 per share. This would mark a year-over-year decline of 9.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.84 billion, down 1.5% from the year-ago period.

Investors should also note any recent changes to analyst estimates for PG. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. PG is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, PG is currently trading at a Forward P/E ratio of 23.96. For comparison, its industry has an average Forward P/E of 24.85, which means PG is trading at a discount to the group.

Investors should also note that PG has a PEG ratio of 3.33 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Soap and Cleaning Materials stocks are, on average, holding a PEG ratio of 4.12 based on yesterday's closing prices.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% 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.

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


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