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Procter & Gamble (PG) Dips More Than Broader Markets: What You Should Know

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Procter & Gamble (PG - Free Report) closed at $151.96 in the latest trading session, marking a -1.29% move from the prior day. This change lagged the S&P 500's daily loss of 1.2%. Elsewhere, the Dow lost 1.1%, while the tech-heavy Nasdaq lost 2.86%.

Heading into today, shares of the world's largest consumer products maker had gained 5.82% over the past month, outpacing the Consumer Staples sector's gain of 1.13% and the S&P 500's loss of 4.77% in that time.

Investors will be hoping for strength from Procter & Gamble as it approaches its next earnings release, which is expected to be January 19, 2023. In that report, analysts expect Procter & Gamble to post earnings of $1.57 per share. This would mark a year-over-year decline of 5.42%. Our most recent consensus estimate is calling for quarterly revenue of $20.54 billion, down 1.98% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.83 per share and revenue of $79.5 billion. These totals would mark changes of +0.34% and -0.86%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Procter & Gamble. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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 has moved 0.02% higher within the past month. Procter & Gamble currently has a Zacks Rank of #3 (Hold).

Investors should also note Procter & Gamble's current valuation metrics, including its Forward P/E ratio of 26.42. Its industry sports an average Forward P/E of 26.42, so we one might conclude that Procter & Gamble is trading at a no noticeable deviation comparatively.

We can also see that PG currently has a PEG ratio of 4.41. 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. Soap and Cleaning Materials stocks are, on average, holding a PEG ratio of 4.27 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 71, which puts it in the top 29% 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.

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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