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Procter & Gamble (PG) Gains As Market Dips: What You Should Know

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Procter & Gamble (PG - Free Report) closed the most recent trading day at $161.30, moving +0.44% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 1.11%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq lost 1.89%.

The world's largest consumer products maker's shares have seen a decrease of 5.97% over the last month, not keeping up with the Consumer Staples sector's loss of 5.93% and the S&P 500's loss of 1.7%.

The investment community will be paying close attention to the earnings performance of Procter & Gamble in its upcoming release. The company is slated to reveal its earnings on January 22, 2025. In that report, analysts expect Procter & Gamble to post earnings of $1.88 per share. This would mark year-over-year growth of 2.17%. Meanwhile, our latest consensus estimate is calling for revenue of $21.7 billion, up 1.22% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.93 per share and a revenue of $85.43 billion, signifying shifts of +5.16% and +1.65%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Procter & Gamble. 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.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.51% decrease. Currently, Procter & Gamble is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Procter & Gamble has a Forward P/E ratio of 23.17 right now. Its industry sports an average Forward P/E of 22.44, so one might conclude that Procter & Gamble is trading at a premium comparatively.

Meanwhile, PG's PEG ratio is currently 3.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Consumer Products - Staples stocks are, on average, holding a PEG ratio of 2.68 based on yesterday's closing prices.

The Consumer Products - Staples industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 76, this industry ranks in the top 31% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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