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Procter & Gamble (PG) Advances While Market Declines: Some Information for Investors

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In the latest close session, Procter & Gamble (PG - Free Report) was up +1.48% at $142.84. This change outpaced the S&P 500's 1.07% loss on the day. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, lost 1.69%.

The world's largest consumer products maker's shares have seen a decrease of 4.87% over the last month, not keeping up with the Consumer Staples sector's loss of 0.24% and the S&P 500's gain of 0.94%.

Market participants will be closely following the financial results of Procter & Gamble in its upcoming release. The company is predicted to post an EPS of $1.88, indicating constancy compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $22.34 billion, indicating a 2.08% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.01 per share and revenue of $86.93 billion, indicating changes of +2.64% and +3.14%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Procter & Gamble should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% lower. Procter & Gamble is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Procter & Gamble has a Forward P/E ratio of 20.09 right now. This signifies a premium in comparison to the average Forward P/E of 19 for its industry.

Also, we should mention that PG has a PEG ratio of 4.73. 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. Consumer Products - Staples stocks are, on average, holding a PEG ratio of 2.71 based on yesterday's closing prices.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 184, finds itself in the bottom 26% echelons 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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