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Procter & Gamble (PG) Gains As Market Dips: What You Should Know

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Procter & Gamble (PG - Free Report) closed at $164.21 in the latest trading session, marking a +0.45% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.94%. Elsewhere, the Dow lost 1.07%, while the tech-heavy Nasdaq lost 0.39%.

Heading into today, shares of the world's largest consumer products maker had gained 7.72% over the past month, lagging the Consumer Staples sector's gain of 8.34% and outpacing the S&P 500's gain of 5.72% in that time.

Procter & Gamble will be looking to display strength as it nears its next earnings release, which is expected to be January 19, 2022. The company is expected to report EPS of $1.66, up 1.22% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.38 billion, up 3.23% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.93 per share and revenue of $79.41 billion. These totals would mark changes of +4.77% and +4.33%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Procter & Gamble. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Procter & Gamble is currently a Zacks Rank #3 (Hold).

Digging into valuation, Procter & Gamble currently has a Forward P/E ratio of 27.59. This represents a premium compared to its industry's average Forward P/E of 25.

It is also worth noting that PG currently has a PEG ratio of 4.13. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Soap and Cleaning Materials industry currently had an average PEG ratio of 4.53 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 217, which puts it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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