This story originally appeared on Zacks
In the latest trading session, Procter & Gamble (PG) closed at $141.66, marking a -1.32% move from the previous day. This move lagged the S&P 500’s daily loss of 0.28%.
Heading into today, shares of the world’s largest consumer products maker had gained 0.87% over the past month, outpacing the Consumer Staples sector’s loss of 1.95% and the S&P 500’s loss of 0.56% in that time.
Wall Street will be looking for positivity from PG as it approaches its next earnings report date. This is expected to be October 19, 2021. In that report, analysts expect PG to post earnings of $1.58 per share. This would mark a year-over-year decline of 3.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.79 billion, up 2.47% from the year-ago period.
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.
Investors might also notice recent changes to analyst estimates for PG. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. PG is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note PG’s current valuation metrics, including its Forward P/E ratio of 24.18. Its industry sports an average Forward P/E of 23.79, so we one might conclude that PG is trading at a premium comparatively.
Also, we should mention that PG has a PEG ratio of 3.45. 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. PG’s industry had an average PEG ratio of 3.96 as of yesterday’s close.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 251, putting it in the bottom 2% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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