Procter & Gamble (PG) closed the most recent trading day at $138.42, moving -0.19% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 0.22%. Elsewhere, the Dow lost 0.23%, while the tech-heavy Nasdaq lost 0.38%.
Heading into today, shares of the world’s largest consumer products maker had lost 0.14% over the past month, lagging the Consumer Staples sector’s gain of 3.25% and the S&P 500’s gain of 2.78% in that time.
PG will be looking to display strength as it nears its next earnings release, which is expected to be January 20, 2021. In that report, analysts expect PG to post earnings of $1.50 per share. This would mark year-over-year growth of 5.63%. Meanwhile, our latest consensus estimate is calling for revenue of $19.01 billion, up 4.21% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.56 per share and revenue of $74.19 billion. These totals would mark changes of +8.59% and +4.56%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for PG. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.2% higher within the past month. PG is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, PG currently has a Forward P/E ratio of 24.96. This valuation marks a no noticeable deviation compared to its industry’s average Forward P/E of 24.96.
Also, we should mention that PG has a PEG ratio of 3.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Soap and Cleaning Materials stocks are, on average, holding a PEG ratio of 4.29 based on yesterday’s closing prices.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 132, which puts it in the bottom 49% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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