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Procter & Gamble (PG) Rises But Trails Market: What Investors Should Know

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The most recent trading session ended with Procter & Gamble (PG - Free Report) standing at $168.25, reflecting a +0.17% shift from the previouse trading day's closing. This change lagged the S&P 500's 1.08% gain on the day. Meanwhile, the Dow gained 0.32%, and the Nasdaq, a tech-heavy index, added 1.58%.

The world's largest consumer products maker's shares have seen a decrease of 0.18% over the last month, not keeping up with the Consumer Staples sector's gain of 1.82% and the S&P 500's gain of 0.43%.

Analysts and investors alike will be keeping a close eye on the performance of Procter & Gamble in its upcoming earnings disclosure. The company's earnings report is set to go public on July 30, 2024. In that report, analysts expect Procter & Gamble to post earnings of $1.37 per share. This would mark no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.78 billion, up 1.1% from the year-ago period.

It's also important for investors to be aware of any recent modifications to analyst estimates for Procter & Gamble. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.04% upward. Procter & Gamble presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Procter & Gamble is currently trading at a Forward P/E ratio of 24.1. This valuation marks a premium compared to its industry's average Forward P/E of 21.09.

It is also worth noting that PG currently has a PEG ratio of 3.15. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Soap and Cleaning Materials industry currently had an average PEG ratio of 3.15 as of yesterday's close.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 96, finds itself in the top 39% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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