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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 the most recent trading day at $141.83, moving +1.42% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq added 2.77%.

Heading into today, shares of the world's largest consumer products maker had gained 0.41% over the past month, outpacing the Consumer Staples sector's loss of 1.52% and the S&P 500's loss of 5.06% in that time.

Wall Street will be looking for positivity from Procter & Gamble as it approaches its next earnings report date. On that day, Procter & Gamble is projected to report earnings of $1.32 per share, which would represent a year-over-year decline of 0.75%. Meanwhile, our latest consensus estimate is calling for revenue of $19.32 billion, down 0.32% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.84 per share and revenue of $80.36 billion. These totals would mark changes of +0.52% and +0.22%, 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. Procter & Gamble is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Procter & Gamble has a Forward P/E ratio of 23.97 right now. This represents a premium compared to its industry's average Forward P/E of 23.32.

It is also worth noting that PG currently has a PEG ratio of 3.9. 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 industry currently had an average PEG ratio of 3.69 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 76, which puts it in the top 31% 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.

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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