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

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Procter & Gamble (PG) closed at $152.15 in the latest trading session, marking a +1.51% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.17%. Meanwhile, the Dow gained 1.87%, and the Nasdaq, a tech-heavy index, added 0.62%.

Prior to today's trading, shares of the world's largest consumer products maker had gained 2.63% over the past month. This has outpaced the Consumer Staples sector's loss of 2.85% and the S&P 500's loss of 2.46% in that time.

Wall Street will be looking for positivity from Procter & Gamble as it approaches its next earnings report date. The company is expected to report EPS of $1.66, up 1.22% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $20.38 billion, up 3.23% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.93 per share and revenue of $79.41 billion. These totals would mark changes of +4.77% and +4.33%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Procter & Gamble. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Procter & Gamble is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Procter & Gamble has a Forward P/E ratio of 25.3 right now. For comparison, its industry has an average Forward P/E of 23.88, which means Procter & Gamble is trading at a premium to the group.

We can also see that PG currently has a PEG ratio of 3.79. 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. Soap and Cleaning Materials stocks are, on average, holding a PEG ratio of 4.33 based on yesterday's closing prices.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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