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Procter & Gamble (PG) Dips More Than Broader Markets: What You Should Know

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Procter & Gamble (PG - Free Report) closed the most recent trading day at $137.85, moving -0.68% from the previous trading session. This move lagged the S&P 500's daily loss of 0.66%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq lost 1.25%.

Heading into today, shares of the world's largest consumer products maker had gained 2.42% over the past month, outpacing the Consumer Staples sector's gain of 0.85% and lagging the S&P 500's gain of 3.42% in that time.

Wall Street will be looking for positivity from PG as it approaches its next earnings report date. This is expected to be January 20, 2021. The company is expected to report EPS of $1.51, up 6.34% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.15 billion, up 4.98% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.57 per share and revenue of $74.45 billion, which would represent changes of +8.79% and +4.93%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for PG. Recent revisions tend to reflect the latest near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.48% higher. PG is currently a Zacks Rank #2 (Buy).

Investors should also note PG's current valuation metrics, including its Forward P/E ratio of 24.91. Its industry sports an average Forward P/E of 24.66, so we one might conclude that PG is trading at a premium comparatively.

Meanwhile, PG's PEG ratio is currently 3.29. 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. PG's industry had an average PEG ratio of 4.18 as of yesterday's close.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.

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


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