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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 at $138.70 in the latest trading session, marking a +0.64% move from the prior day. The stock lagged the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 0.95%.

Coming into today, shares of the world's largest consumer products maker had gained 0.1% in the past month. In that same time, the Consumer Staples sector lost 0.15%, while the S&P 500 gained 0.17%.

Investors will be hoping for strength from PG as it approaches its next earnings release, which is expected to be January 20, 2021. In that report, analysts expect PG to post earnings of $1.51 per share. This would mark year-over-year growth of 6.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.01 billion, up 4.21% from the year-ago period.

PG's full-year Zacks Consensus Estimates are calling for earnings of $5.57 per share and revenue of $74.19 billion. These results would represent year-over-year changes of +8.79% and +4.56%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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

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 has moved 0.48% higher. PG is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note PG's current valuation metrics, including its Forward P/E ratio of 24.73. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 24.73.

Also, we should mention that PG has a PEG ratio of 3.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Soap and Cleaning Materials stocks are, on average, holding a PEG ratio of 4.25 based on yesterday's closing prices.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 133, which puts it in the bottom 48% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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