Procter & Gamble (PG) Falls More Steeply Than Broader Market: What Investors Need to Know

Procter & Gamble (PG) closed the most recent trading day at $144.84, moving -1.27% from the previous trading session. This change lagged the S&P 500's 0.28% loss on the day. Meanwhile, the Dow lost 0.44%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Shares of the world's largest consumer products maker have depreciated by 6.47% over the course of the past month, outperforming the Consumer Staples sector's loss of 8.01%, and lagging the S&P 500's loss of 3.59%.

Analysts and investors alike will be keeping a close eye on the performance of Procter & Gamble in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.57, indicating a 1.95% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $20.61 billion, showing a 4.2% escalation compared to the year-ago quarter.

PG's full-year Zacks Consensus Estimates are calling for earnings of $6.97 per share and revenue of $86.71 billion. These results would represent year-over-year changes of +2.05% and +2.88%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Procter & Gamble. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.02% downward. At present, Procter & Gamble boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Procter & Gamble is presently being traded at a Forward P/E ratio of 21.04. This denotes a premium relative to the industry average Forward P/E of 18.72.

We can also see that PG currently has a PEG ratio of 4.9. 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. By the end of yesterday's trading, the Consumer Products - Staples industry had an average PEG ratio of 3.01.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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