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Procter & Gamble (PG) Gains But Lags Market: What You Should Know

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In the latest trading session, Procter & Gamble (PG) closed at $133.07, marking a +0.79% move from the previous day. The stock lagged the S&P 500's daily gain of 1.4%.

Prior to today's trading, shares of the world's largest consumer products maker had lost 4.33% over the past month. This has lagged the Consumer Staples sector's loss of 1.43% and the S&P 500's gain of 1.07% in that time.

PG will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.08, down 6.9% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $18.19 billion, up 2.79% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.62 per share and revenue of $75.38 billion, which would represent changes of +9.77% and +6.24%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for PG. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. PG is currently a Zacks Rank #3 (Hold).

Looking at its valuation, PG is holding a Forward P/E ratio of 23.48. Its industry sports an average Forward P/E of 22.81, so we one might conclude that PG is trading at a premium comparatively.

We can also see that PG currently has a PEG ratio of 3.35. 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. PG's industry had an average PEG ratio of 3.45 as of yesterday's close.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 14% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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