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In the latest trading session, Procter & Gamble (PG) closed at $138.79, marking a -0.57% move from the previous day. This move was narrower than the S&P 500’s daily loss of 1.3%.
Coming into today, shares of the world’s largest consumer products maker had lost 3.1% in the past month. In that same time, the Consumer Staples sector lost 4.57%, while the S&P 500 lost 3.58%.
Investors will be hoping for strength from PG as it approaches its next earnings release, which is expected to be October 19, 2021. The company is expected to report EPS of $1.58, down 3.07% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $19.79 billion, up 2.47% from the prior-year quarter.
PG’s full-year Zacks Consensus Estimates are calling for earnings of $5.94 per share and revenue of $78.97 billion. These results would represent year-over-year changes of +4.95% and +3.74%, respectively.
Any recent changes to analyst estimates for PG should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. PG is currently a Zacks Rank #3 (Hold).
Digging into valuation, PG currently has a Forward P/E ratio of 23.51. Its industry sports an average Forward P/E of 23.46, so we one might conclude that PG is trading at a premium comparatively.
Also, we should mention that PG has a PEG ratio of 3.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. PG’s industry had an average PEG ratio of 3.91 as of yesterday’s close.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 246, which puts it in the bottom 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow PG in the coming trading sessions, be sure to utilize Zacks.com.
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