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Procter & Gamble (PG) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, Procter & Gamble (PG - Free Report) closed at $172.51, marking a +0.83% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.77% for the day. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.87%.

The world's largest consumer products maker's stock has dropped by 1.72% in the past month, exceeding the Consumer Staples sector's loss of 1.9% and lagging the S&P 500's gain of 4.87%.

Market participants will be closely following the financial results of Procter & Gamble in its upcoming release. The company plans to announce its earnings on October 18, 2024. It is anticipated that the company will report an EPS of $1.90, marking a 3.83% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $21.95 billion, indicating a 0.36% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $6.97 per share and a revenue of $86 billion, demonstrating changes of +5.77% and +2.34%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Procter & Gamble. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Procter & Gamble currently has a Zacks Rank of #3 (Hold).

Investors should also note Procter & Gamble's current valuation metrics, including its Forward P/E ratio of 24.54. This valuation marks a premium compared to its industry's average Forward P/E of 24.15.

We can additionally observe that PG currently boasts a PEG ratio of 3.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Soap and Cleaning Materials industry currently had an average PEG ratio of 3.36 as of yesterday's close.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 17, this industry ranks in the top 7% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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