Procter & Gamble (PG) closed the most recent trading day at $160.28, moving -1.78% from the previous trading session. This change lagged the S&P 500's 1.13% loss on the day. On the other hand, the Dow registered a loss of 1.79%, and the technology-centric Nasdaq decreased by 1.3%.
The world's largest consumer products maker's shares have seen an increase of 0.47% over the last month, not keeping up with the Consumer Staples sector's gain of 3.14% and the S&P 500's gain of 3.55%.
The investment community will be closely monitoring the performance of Procter & Gamble in its forthcoming earnings report. In that report, analysts expect Procter & Gamble to post earnings of $1.43 per share. This would mark year-over-year growth of 2.14%. Alongside, our most recent consensus estimate is anticipating revenue of $20.85 billion, indicating a 1.54% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $6.78 per share and a revenue of $84.24 billion, demonstrating changes of +2.88% and +0.24%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Procter & Gamble. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% upward. Procter & Gamble is currently a Zacks Rank #4 (Sell).
In the context of valuation, Procter & Gamble is at present trading with a Forward P/E ratio of 24.07. For comparison, its industry has an average Forward P/E of 19.52, which means Procter & Gamble is trading at a premium to the group.
We can additionally observe that PG currently boasts a PEG ratio of 4.81. 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. As the market closed yesterday, the Consumer Products - Staples industry was having an average PEG ratio of 3.56.
The Consumer Products - Staples industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 164, this industry ranks in the bottom 34% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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