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

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In the latest trading session, Procter & Gamble (PG - Free Report) closed at $118.13, marking a +1.23% move from the previous day. This change lagged the S&P 500's 1.9% gain on the day. At the same time, the Dow added 2.05%, and the tech-heavy Nasdaq gained 1.75%.

Investors will be hoping for strength from PG as it approaches its next earnings release. On that day, PG is projected to report earnings of $0.99 per share, which would represent a year-over-year decline of 10%. Meanwhile, our latest consensus estimate is calling for revenue of $16.77 billion, down 1.9% from the prior-year quarter.

PG's full-year Zacks Consensus Estimates are calling for earnings of $4.95 per share and revenue of $70.02 billion. These results would represent year-over-year changes of +9.51% and +3.45%, respectively.

Investors might also notice recent changes to analyst estimates for PG. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant. PG currently has a Zacks Rank of #3 (Hold).

Digging into valuation, PG currently has a Forward P/E ratio of 23.56. This valuation marks a discount compared to its industry's average Forward P/E of 23.62.

It is also worth noting that PG currently has a PEG ratio of 3.29. 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 was holding an average PEG ratio of 4.05 at yesterday's closing price.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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