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Procter & Gamble (PG) Gains But Lags Market: What You Should Know

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Procter & Gamble (PG - Free Report) closed at $100.25 in the latest trading session, marking a +0.47% move from the prior day. The stock lagged the S&P 500's daily gain of 0.64%. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 0.91%.

Heading into today, shares of the world's largest consumer products maker had gained 5.81% over the past month, outpacing the Consumer Staples sector's gain of 5.3% and the S&P 500's gain of 4.16% in that time.

PG will be looking to display strength as it nears its next earnings release. In that report, analysts expect PG to post earnings of $1.06 per share. This would mark year-over-year growth of 6%. Meanwhile, our latest consensus estimate is calling for revenue of $16.38 billion, up 0.64% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.46 per share and revenue of $67.26 billion. These totals would mark changes of +5.69% and +0.64%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for PG. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.88% higher within the past month. PG is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, PG is holding a Forward P/E ratio of 22.38. For comparison, its industry has an average Forward P/E of 21.55, which means PG is trading at a premium to the group.

It is also worth noting that PG currently has a PEG ratio of 3.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Soap and Cleaning Materials industry currently had an average PEG ratio of 3.78 as of yesterday's close.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.

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


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