In the latest close session, Procter & Gamble (PG) was up +1.35% at $152.49. The stock's performance was ahead of the S&P 500's daily loss of 0.57%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq decreased by 1.15%.
Heading into today, shares of the world's largest consumer products maker had gained 5.67% over the past month, outpacing the Consumer Staples sector's gain of 1.3% and the S&P 500's gain of 2.14%.
Investors will be eagerly watching for the performance of Procter & Gamble in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.44, signifying a 2.70% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $21.46 billion, up 2.74% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.91 per share and a revenue of $87.15 billion, indicating changes of +1.17% and +3.4%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Procter & Gamble. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. Right now, Procter & Gamble possesses a Zacks Rank of #4 (Sell).
With respect to valuation, Procter & Gamble is currently being traded at a Forward P/E ratio of 21.79. This indicates a premium in contrast to its industry's Forward P/E of 19.48.
It's also important to note that PG currently trades at a PEG ratio of 6.54. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PG's industry had an average PEG ratio of 3.16 as of yesterday's close.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Procter & Gamble Company (The) (PG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).