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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 at $119.32 in the latest trading session, marking a +1.7% move from the prior day. This change outpaced the S&P 500's 1.1% gain on the day. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 1.32%.

Heading into today, shares of the world's largest consumer products maker had gained 4.03% over the past month, outpacing the Consumer Staples sector's loss of 1.52% and the S&P 500's loss of 5.05% in that time.

PG will be looking to display strength as it nears its next earnings release. On that day, PG is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 10.71%. Meanwhile, our latest consensus estimate is calling for revenue of $17.49 billion, up 4.82% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.84 per share and revenue of $70.36 billion. These totals would mark changes of +7.08% and +3.96%, respectively, from last year.

It is also important to note the 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Within the past 30 days, our consensus EPS projection has moved 2.11% higher. PG is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, PG is currently trading at a Forward P/E ratio of 24.22. Its industry sports an average Forward P/E of 23.05, so we one might conclude that PG is trading at a premium comparatively.

Also, we should mention that PG has a PEG ratio of 3.41. 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. Soap and Cleaning Materials stocks are, on average, holding a PEG ratio of 4.14 based on yesterday's closing prices.

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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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