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Procter & Gamble (PG) Stock Sinks As Market Gains: What You Should Know

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Procter & Gamble (PG - Free Report) closed at $124.91 in the latest trading session, marking a -0.36% move from the prior day. This move lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.34%, while the tech-heavy Nasdaq added 0.23%.

Coming into today, shares of the world's largest consumer products maker had gained 4.17% in the past month. In that same time, the Consumer Staples sector gained 3.73%, while the S&P 500 gained 3.81%.

Wall Street will be looking for positivity from PG as it approaches its next earnings report date. In that report, analysts expect PG to post earnings of $1.37 per share. This would mark year-over-year growth of 9.6%. Our most recent consensus estimate is calling for quarterly revenue of $18.32 billion, up 5.07% from the year-ago period.

PG's full-year Zacks Consensus Estimates are calling for earnings of $4.94 per share and revenue of $70.45 billion. These results would represent year-over-year changes of +9.29% and +4.09%, respectively.

It is also important to note the recent changes to analyst estimates for PG. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 remained stagnant. PG is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, PG is holding a Forward P/E ratio of 25.36. Its industry sports an average Forward P/E of 22.59, so we one might conclude that PG is trading at a premium comparatively.

Also, we should mention that PG has a PEG ratio of 3.4. 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. Soap and Cleaning Materials stocks are, on average, holding a PEG ratio of 4.14 based on yesterday's closing prices.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 30% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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