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

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Procter & Gamble (PG - Free Report) closed at $140.51 in the latest trading session, marking a +1.69% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.54%. Meanwhile, the Dow gained 1.59%, and the Nasdaq, a tech-heavy index, added 0.98%.

Heading into today, shares of the world's largest consumer products maker had gained 3.28% over the past month, outpacing the Consumer Staples sector's gain of 2.71% and lagging the S&P 500's gain of 8% in that time.

Investors will be hoping for strength from PG as it approaches its next earnings release. On that day, PG is projected to report earnings of $1.41 per share, which would represent year-over-year growth of 2.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.21 billion, up 2.32% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.40 per share and revenue of $72.84 billion. These totals would mark changes of +5.47% and +2.67%, respectively, from last year.

Any recent changes to analyst estimates for PG should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PG is currently a Zacks Rank #3 (Hold).

Investors should also note PG's current valuation metrics, including its Forward P/E ratio of 25.6. This represents a premium compared to its industry's average Forward P/E of 25.15.

Investors should also note that PG has a PEG ratio of 3.45 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. The Soap and Cleaning Materials industry currently had an average PEG ratio of 3.93 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 51, which puts 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.

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


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