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Procter & Gamble (PG) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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In the latest market close, Procter & Gamble (PG - Free Report) reached $168.16, with a +0.62% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.97%. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.45%.

Coming into today, shares of the world's largest consumer products maker had lost 5.08% in the past month. In that same time, the Consumer Staples sector lost 3.52%, while the S&P 500 gained 5.41%.

The investment community will be paying close attention to the earnings performance of Procter & Gamble in its upcoming release. The company is slated to reveal its earnings on October 18, 2024. The company's upcoming EPS is projected at $1.90, signifying a 3.83% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.97 billion, up 0.45% from the year-ago period.

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.

It is also important to note the recent changes to analyst estimates for Procter & Gamble. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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% downward. Procter & Gamble is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Procter & Gamble is currently exchanging hands at a Forward P/E ratio of 23.97. This represents no noticeable deviation compared to its industry's average Forward P/E of 23.97.

It's also important to note that PG currently trades at a PEG ratio of 3.62. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Soap and Cleaning Materials was holding an average PEG ratio of 3.34 at yesterday's closing price.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 10, putting it in the top 4% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

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


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