Procter & Gamble (PG) closed at $153.99 in the latest trading session, marking a -2.72% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.57% for the day. On the other hand, the Dow registered a loss of 1.61%, and the technology-centric Nasdaq decreased by 0.26%.
Coming into today, shares of the world's largest consumer products maker had gained 0.91% in the past month. In that same time, the Consumer Staples sector lost 0.16%, while the S&P 500 lost 0.15%.
Market participants will be closely following the financial results of Procter & Gamble in its upcoming release. It is anticipated that the company will report an EPS of $1.57, marking a 1.95% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $20.61 billion, indicating a 4.2% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.97 per share and a revenue of $86.71 billion, signifying shifts of +2.05% and +2.88%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Procter & Gamble. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Right now, Procter & Gamble possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Procter & Gamble is currently being traded at a Forward P/E ratio of 22.7. This indicates a premium in contrast to its industry's Forward P/E of 19.34.
We can additionally observe that PG currently boasts a PEG ratio of 5.29. 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. PG's industry had an average PEG ratio of 2.93 as of yesterday's close.
The Consumer Products - Staples industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 80, positioning it in the top 33% 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.
You can find more information on all of these metrics, and much 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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