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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 $137.03 in the latest trading session, marking a +0.04% move from the prior day. This move lagged the S&P 500's daily gain of 1.13%.

Coming into today, shares of the world's largest consumer products maker had gained 0.88% in the past month. In that same time, the Consumer Staples sector lost 3.36%, while the S&P 500 gained 2.39%.

PG will be looking to display strength as it nears its next earnings release, which is expected to be July 30, 2021. In that report, analysts expect PG to post earnings of $1.09 per share. This would mark a year-over-year decline of 6.03%. Our most recent consensus estimate is calling for quarterly revenue of $18.22 billion, up 2.97% from the year-ago period.

Investors might also notice recent changes to analyst estimates for PG. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. PG is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note PG's current valuation metrics, including its Forward P/E ratio of 23.13. Its industry sports an average Forward P/E of 23.13, so we one might conclude that PG is trading at a no noticeable deviation comparatively.

It is also worth noting that PG currently has a PEG ratio of 3.3. 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. Soap and Cleaning Materials stocks are, on average, holding a PEG ratio of 3.57 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 193, putting it in the bottom 25% 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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