Back to top

Image: Bigstock

Why the Market Dipped But Procter & Gamble (PG) Gained Today

Read MoreHide Full Article

Procter & Gamble (PG - Free Report) closed the latest trading day at $159.56, indicating a +0.45% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.12%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.41%.

The world's largest consumer products maker's shares have seen an increase of 0.48% over the last month, surpassing the Consumer Staples sector's loss of 1.3% and falling behind the S&P 500's gain of 4.83%.

The investment community will be closely monitoring the performance of Procter & Gamble in its forthcoming earnings report. The company's upcoming EPS is projected at $1.42, signifying a 3.65% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $20.53 billion, reflecting a 2.3% rise from the equivalent quarter last year.

PG's full-year Zacks Consensus Estimates are calling for earnings of $6.45 per share and revenue of $84.89 billion. These results would represent year-over-year changes of +9.32% and +3.52%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Procter & Gamble. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. Procter & Gamble currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Procter & Gamble is at present trading with a Forward P/E ratio of 24.62. Its industry sports an average Forward P/E of 24.62, so one might conclude that Procter & Gamble is trading at no noticeable deviation comparatively.

Also, we should mention that PG has a PEG ratio of 3.24. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Soap and Cleaning Materials industry had an average PEG ratio of 3.43.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 28, putting it in the top 12% of all 250+ industries.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Procter & Gamble Company (The) (PG) - free report >>

Published in