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Procter & Gamble (PG) Suffers a Larger Drop Than the General Market: Key Insights

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Procter & Gamble (PG - Free Report) ended the recent trading session at $167.12, demonstrating a -1.04% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.96% for the day. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq depreciated by 1.18%.

Prior to today's trading, shares of the world's largest consumer products maker had lost 3.82% over the past month. This has lagged the Consumer Staples sector's loss of 2.88% and the S&P 500's gain of 4.3% in that time.

Market participants will be closely following the financial results of Procter & Gamble in its upcoming release. The company plans to announce its earnings on October 18, 2024. On that day, Procter & Gamble is projected to report earnings of $1.90 per share, which would represent year-over-year growth of 3.83%. Meanwhile, our latest consensus estimate is calling for revenue of $21.97 billion, up 0.45% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.97 per share and revenue of $86.04 billion, indicating changes of +5.77% and +2.38%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments 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.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. Right now, Procter & Gamble possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Procter & Gamble is presently trading at a Forward P/E ratio of 24.23. This represents no noticeable deviation compared to its industry's average Forward P/E of 24.23.

It is also worth noting that PG currently has a PEG ratio of 3.66. 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 average PEG ratio for the Soap and Cleaning Materials industry stood at 3.36 at the close of the market yesterday.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 10, this industry ranks in the top 4% of all industries, numbering over 250.

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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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