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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 the most recent trading day at $152.04, moving -1.22% from the previous trading session. This change lagged the S&P 500's daily loss of 0.08%. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, added 11.55%.

Coming into today, shares of the world's largest consumer products maker had gained 1.99% in the past month. In that same time, the Consumer Staples sector lost 2.09%, while the S&P 500 lost 1.03%.

Investors will be hoping for strength from Procter & Gamble as it approaches its next earnings release, which is expected to be January 19, 2023. On that day, Procter & Gamble is projected to report earnings of $1.57 per share, which would represent a year-over-year decline of 5.42%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.56 billion, down 1.88% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.83 per share and revenue of $79.56 billion, which would represent changes of +0.34% and -0.78%, respectively, from the prior year.

Any recent changes to analyst estimates for Procter & Gamble should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. Procter & Gamble currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, Procter & Gamble is holding a Forward P/E ratio of 26.4. This valuation marks a premium compared to its industry's average Forward P/E of 25.25.

Also, we should mention that PG 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. PG's industry had an average PEG ratio of 4.2 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 89, which puts it in the top 36% 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.

To follow PG in the coming trading sessions, be sure to utilize Zacks.com.


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