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Procter & Gamble (PG) Advances But Underperforms Market: Key Facts

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The latest trading session saw Procter & Gamble (PG - Free Report) ending at $146.06, denoting a +0.08% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.14% for the day. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 0.16%.

The world's largest consumer products maker's stock has dropped by 4.17% in the past month, falling short of the Consumer Staples sector's gain of 1.83% and the S&P 500's gain of 4.89%.

The upcoming earnings release of Procter & Gamble will be of great interest to investors. The company's earnings report is expected on January 23, 2024. The company's earnings per share (EPS) are projected to be $1.71, reflecting a 7.55% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $21.73 billion, up 4.63% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.42 per share and a revenue of $85.17 billion, signifying shifts of +8.81% and +3.85%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Procter & Gamble. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Procter & Gamble holds a Zacks Rank of #2 (Buy).

Looking at valuation, Procter & Gamble is presently trading at a Forward P/E ratio of 22.72. Its industry sports an average Forward P/E of 22.72, so one might conclude that Procter & Gamble is trading at no noticeable deviation comparatively.

Investors should also note that PG has a PEG ratio of 3.02 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Soap and Cleaning Materials industry had an average PEG ratio of 3.18.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 33% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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