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Why Procter & Gamble (PG) Dipped More Than Broader Market Today

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In the latest market close, Procter & Gamble (PG - Free Report) reached $167.71, with a -1.21% movement compared to the previous day. This move lagged the S&P 500's daily loss of 1.07%. Meanwhile, the Dow experienced a drop of 0.62%, and the technology-dominated Nasdaq saw a decrease of 1.71%.

The world's largest consumer products maker's shares have seen an increase of 4.22% over the last month, not keeping up with the Consumer Staples sector's gain of 4.7% and outstripping the S&P 500's loss of 7.03%.

Market participants will be closely following the financial results of Procter & Gamble in its upcoming release. The company plans to announce its earnings on April 24, 2025. The company's upcoming EPS is projected at $1.57, signifying a 3.29% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $20.52 billion, showing a 1.6% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.90 per share and revenue of $85.24 billion, which would represent changes of +4.7% and +1.43%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Procter & Gamble. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.11% fall in the Zacks Consensus EPS estimate. As of now, Procter & Gamble holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Procter & Gamble is currently exchanging hands at a Forward P/E ratio of 24.59. This signifies a premium in comparison to the average Forward P/E of 21.4 for its industry.

Investors should also note that PG has a PEG ratio of 3.84 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. PG's industry had an average PEG ratio of 3.45 as of yesterday's close.

The Consumer Products - Staples industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 42% of over 250 industries.

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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