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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 $138.15, moving +1.63% from the previous trading session. This move lagged the S&P 500's daily gain of 2.02%. Elsewhere, the Dow gained 1.6%, while the tech-heavy Nasdaq added 2.71%.

Coming into today, shares of the world's largest consumer products maker had gained 2.03% in the past month. In that same time, the Consumer Staples sector gained 0.82%, while the S&P 500 lost 0.39%.

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 $1.41 per share, which would represent year-over-year growth of 2.92%. Meanwhile, our latest consensus estimate is calling for revenue of $18.21 billion, up 2.32% from the prior-year quarter.

PG's full-year Zacks Consensus Estimates are calling for earnings of $5.40 per share and revenue of $72.84 billion. These results would represent year-over-year changes of +5.47% and +2.67%, respectively.

Any recent changes to analyst estimates for PG should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PG is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, PG is holding a Forward P/E ratio of 25.18. Its industry sports an average Forward P/E of 24.3, so we one might conclude that PG is trading at a premium comparatively.

Meanwhile, PG's PEG ratio is currently 3.4. 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 3.8 at yesterday's closing price.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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