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Procter & Gamble (PG) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest trading session, Procter & Gamble (PG - Free Report) closed at $160.22, marking a -0.5% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.13%.

Coming into today, shares of the world's largest consumer products maker had gained 3.13% in the past month. In that same time, the Consumer Staples sector gained 2.5%, while the S&P 500 gained 4.74%.

The investment community will be paying close attention to the earnings performance of Procter & Gamble in its upcoming release. On that day, Procter & Gamble is projected to report earnings of $1.42 per share, which would represent year-over-year growth of 3.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.53 billion, up 2.3% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.45 per share and revenue of $84.89 billion, indicating changes of +9.32% and +3.52%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Procter & Gamble. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.11% upward. Procter & Gamble is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Procter & Gamble's current valuation metrics, including its Forward P/E ratio of 24.96. This represents a premium compared to its industry's average Forward P/E of 24.75.

Meanwhile, PG's PEG ratio is currently 3.29. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Soap and Cleaning Materials industry stood at 3.38 at the close of the market yesterday.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 25, this industry ranks in the top 10% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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