In the latest close session, Procter & Gamble (PG) was down 1.59% at $156.15. This move lagged the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 0.22%.
Heading into today, shares of the world's largest consumer products maker had gained 0.23% over the past month, lagging the Consumer Staples sector's gain of 1.04% and the S&P 500's gain of 2.65%.
The investment community will be closely monitoring the performance of Procter & Gamble in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.91, marking a 1.04% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $22.24 billion, up 2.3% from the prior-year quarter.
PG's full-year Zacks Consensus Estimates are calling for earnings of $6.99 per share and revenue of $86.97 billion. These results would represent year-over-year changes of +2.34% and +3.18%, respectively.
Any recent changes to analyst estimates for Procter & Gamble should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 0.48% fall in the Zacks Consensus EPS estimate. Procter & Gamble is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Procter & Gamble is currently exchanging hands at a Forward P/E ratio of 22.71. Its industry sports an average Forward P/E of 22.69, so one might conclude that Procter & Gamble is trading at a premium comparatively.
One should further note that PG currently holds a PEG ratio of 4.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Consumer Products - Staples industry had an average PEG ratio of 3.48.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 175, finds itself in the bottom 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Procter & Gamble Company (The) (PG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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