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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 $143.46, marking a +1.12% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.26%.

Shares of the world's largest consumer products maker have depreciated by 0.68% over the course of the past month, underperforming the Consumer Staples sector's gain of 1.13%, and the S&P 500's gain of 1.89%.

The investment community will be closely monitoring the performance of Procter & Gamble in its forthcoming earnings report. The company is scheduled to release its earnings on January 22, 2026. It is anticipated that the company will report an EPS of $1.87, marking a 0.53% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.28 billion, up 1.82% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.98 per share and a revenue of $86.84 billion, signifying shifts of +2.2% and +3.03%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Procter & Gamble. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.4% lower. Procter & Gamble is currently a Zacks Rank #4 (Sell).

From a valuation perspective, Procter & Gamble is currently exchanging hands at a Forward P/E ratio of 20.33. This represents a discount compared to its industry average Forward P/E of 20.47.

One should further note that PG currently holds a PEG ratio of 4.79. 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 Consumer Products - Staples was holding an average PEG ratio of 2.63 at yesterday's closing price.

The Consumer Products - Staples industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 202, positioning it in the bottom 18% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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