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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 $130.18 in the latest trading session, marking a +1.7% move from the prior day. This move outpaced the S&P 500's daily gain of 0.7%. At the same time, the Dow added 0.32%, and the tech-heavy Nasdaq gained 1.23%.

Prior to today's trading, shares of the world's largest consumer products maker had lost 1.17% over the past month. This has lagged the Consumer Staples sector's gain of 2.15% and the S&P 500's gain of 0.18% in that time.

Investors will be hoping for strength from PG as it approaches its next earnings release. The company is expected to report EPS of $1.19, up 1.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.84 billion, up 3.64% from the year-ago period.

PG's full-year Zacks Consensus Estimates are calling for earnings of $5.66 per share and revenue of $75.41 billion. These results would represent year-over-year changes of +10.55% and +6.29%, respectively.

Investors should also note any recent changes to analyst estimates for PG. 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. Within the past 30 days, our consensus EPS projection has moved 0.07% lower. PG is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note PG's current valuation metrics, including its Forward P/E ratio of 22.62. Its industry sports an average Forward P/E of 22.45, so we one might conclude that PG is trading at a premium comparatively.

We can also see that PG currently has a PEG ratio of 3.23. 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. The Soap and Cleaning Materials industry currently had an average PEG ratio of 3.42 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 162, which puts it in the bottom 37% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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