Procter & Gamble (PG) closed at $105.73 in the latest trading session, marking a +0.64% move from the prior day. This change outpaced the S&P 500’s 0.06% loss on the day. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the world’s largest consumer products maker had gained 3.69% in the past month. In that same time, the Consumer Staples sector gained 4.26%, while the S&P 500 gained 4.3%.
PG will be looking to display strength as it nears its next earnings release, which is expected to be April 23, 2019. On that day, PG is projected to report earnings of $1.04 per share, which would represent year-over-year growth of 4%. Meanwhile, our latest consensus estimate is calling for revenue of $16.38 billion, up 0.6% from the prior-year quarter.
PG’s full-year Zacks Consensus Estimates are calling for earnings of $4.46 per share and revenue of $67.29 billion. These results would represent year-over-year changes of +5.69% and +0.69%, respectively.
Investors should also note any recent changes to analyst estimates for PG. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. 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 23.53. For comparison, its industry has an average Forward P/E of 21.92, which means PG is trading at a premium to the group.
We can also see that PG currently has a PEG ratio of 3.4. 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 3.73 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 10, which puts it in the top 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Procter & Gamble Company (The) (PG): Free Stock Analysis Report
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