In the latest trading session, Procter & Gamble (PG - Free Report) closed at $90.95, marking a -1.63% move from the previous day. This change lagged the S&P 500's daily gain of 0.48%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.8%.
Coming into today, shares of the world's largest consumer products maker had lost 1.54% in the past month. In that same time, the Consumer Staples sector lost 3.6%, while the S&P 500 lost 2.09%.
Wall Street will be looking for positivity from PG as it approaches its next earnings report date. This is expected to be January 23, 2019. In that report, analysts expect PG to post earnings of $1.21 per share. This would mark year-over-year growth of 1.68%. Meanwhile, our latest consensus estimate is calling for revenue of $17.20 billion, down 1.11% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.41 per share and revenue of $66.89 billion, which would represent changes of +4.5% and +0.09%, respectively, from the prior year.
Any recent changes to analyst estimates for PG should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. PG currently has a Zacks Rank of #2 (Buy).
In terms of valuation, PG is currently trading at a Forward P/E ratio of 20.94. Its industry sports an average Forward P/E of 20.24, so we one might conclude that PG is trading at a premium comparatively.
We can also see that PG currently has a PEG ratio of 3. 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. Soap and Cleaning Materials stocks are, on average, holding a PEG ratio of 3.15 based on yesterday's closing prices.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.