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

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In the latest trading session, Procter & Gamble (PG - Free Report) closed at $158.66, marking a -1.16% move from the previous day. This change lagged the S&P 500's daily gain of 0.92%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 0.54%.

Prior to today's trading, shares of the world's largest consumer products maker had gained 1.81% over the past month. This has lagged the Consumer Staples sector's gain of 5.54% and outpaced the S&P 500's loss of 0.85% in that time.

Wall Street will be looking for positivity from Procter & Gamble as it approaches its next earnings report date. This is expected to be January 19, 2022. In that report, analysts expect Procter & Gamble to post earnings of $1.65 per share. This would mark year-over-year growth of 0.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.38 billion, up 3.23% from the year-ago period.

PG's full-year Zacks Consensus Estimates are calling for earnings of $5.91 per share and revenue of $79.41 billion. These results would represent year-over-year changes of +4.42% and +4.33%, respectively.

Any recent changes to analyst estimates for Procter & Gamble should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 0.19% lower. Procter & Gamble currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, Procter & Gamble is holding a Forward P/E ratio of 27.14. This represents a premium compared to its industry's average Forward P/E of 24.65.

Meanwhile, PG's PEG ratio is currently 4.05. 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 4.32 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 212, which puts it in the bottom 17% 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.

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


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