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Procter & Gamble (PG) Outpaces Stock Market Gains: What You Should Know

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Procter & Gamble (PG - Free Report) closed the most recent trading day at $114.39, moving +0.56% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.23%. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq lost 0.08%.

Coming into today, shares of the world's largest consumer products maker had gained 3.71% in the past month. In that same time, the Consumer Staples sector gained 1.41%, while the S&P 500 gained 3.84%.

Wall Street will be looking for positivity from PG as it approaches its next earnings report date. This is expected to be July 30, 2019. The company is expected to report EPS of $1.06, up 12.77% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $16.87 billion, up 2.21% from the prior-year quarter.

Any recent changes to analyst estimates for PG should also be noted by investors. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.3% higher within the past month. PG is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note PG's current valuation metrics, including its Forward P/E ratio of 23.92. Its industry sports an average Forward P/E of 22.87, so we one might conclude that PG is trading at a premium comparatively.

Meanwhile, PG's PEG ratio is currently 3.45. 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 3.92 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 85, which puts it in the top 34% 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.


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