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Procter & Gamble (PG) Increases Yet Falls Behind Market: What Investors Need to Know

Procter & Gamble (PG) closed at $167.35 in the latest trading session, marking a +0.17% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.18%, while the tech-heavy Nasdaq appreciated by 0.35%.

Coming into today, shares of the world's largest consumer products maker had gained 0.13% in the past month. In that same time, the Consumer Staples sector lost 0.52%, while the S&P 500 gained 3.25%.

The investment community will be paying close attention to the earnings performance of Procter & Gamble in its upcoming release. The company's upcoming EPS is projected at $1.37, signifying steadiness compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $20.81 billion, up 1.27% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.55 per share and revenue of $84.32 billion. These totals would mark changes of +11.02% and +2.82%, respectively, from last year.

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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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. 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 25.5. For comparison, its industry has an average Forward P/E of 22.81, which means Procter & Gamble is trading at a premium to the group.

We can additionally observe that PG currently boasts a PEG ratio of 3.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Soap and Cleaning Materials industry stood at 3.22 at the close of the market yesterday.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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