Procter & Gamble (PG) Suffers a Larger Drop Than the General Market: Key Insights

Procter & Gamble (PG) closed at $142.64 in the latest trading session, marking a -2.02% move from the prior day. This move lagged the S&P 500's daily loss of 0.48%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 0.64%.

Prior to today's trading, shares of the world's largest consumer products maker had gained 0.25% outpaced the Consumer Staples sector's loss of 1.36% and the S&P 500's loss of 0.97%.

Investors will be eagerly watching for the performance of Procter & Gamble in its upcoming earnings disclosure. The company is expected to report EPS of $1.89, down 5.03% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $22.68 billion, up 1.33% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.99 per share and a revenue of $88.63 billion, indicating changes of +1.45% and +1.84%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Procter & Gamble. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

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 0.05% lower within the past month. As of now, Procter & Gamble holds a Zacks Rank of #3 (Hold).

In terms of valuation, Procter & Gamble is currently trading at a Forward P/E ratio of 20.84. Its industry sports an average Forward P/E of 18.62, so one might conclude that Procter & Gamble is trading at a premium comparatively.

Investors should also note that PG has a PEG ratio of 3.61 right now. 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. PG's industry had an average PEG ratio of 2.75 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 186, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

To follow PG in the coming trading sessions, be sure to utilize Zacks.com.

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

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