Procter & Gamble (PG – Free Report) closed the latest trading day at $167.09, indicating a -1.44% change from the previous session’s end. The stock fell short of the S&P 500, which registered a loss of 1.07% for the day. Elsewhere, the Dow saw a downswing of 0.97%, while the tech-heavy Nasdaq depreciated by 1.19%.
The world’s largest consumer products maker’s shares have seen a decrease of 5.43% over the last month, not keeping up with the Consumer Staples sector’s loss of 4.74% and the S&P 500’s loss of 0.36%.
Investors will be eagerly watching for the performance of Procter & Gamble in its upcoming earnings disclosure. The company’s earnings report is set to be unveiled on January 22, 2025. It is anticipated that the company will report an EPS of $1.88, marking a 2.17% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $21.7 billion, reflecting a 1.22% rise from the equivalent quarter last year.
PG’s full-year Zacks Consensus Estimates are calling for earnings of $6.93 per share and revenue of $85.43 billion. These results would represent year-over-year changes of +5.16% and +1.65%, respectively.
Any recent changes to analyst estimates for Procter & Gamble should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there’s been a 0.53% fall in the Zacks Consensus EPS estimate. Currently, Procter & Gamble is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Procter & Gamble is currently trading at a Forward P/E ratio of 24.46. This signifies a premium in comparison to the average Forward P/E of 21.36 for its industry.
Also, we should mention that PG has a PEG ratio of 3.65. 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. By the end of yesterday’s trading, the Consumer Products – Staples industry had an average PEG ratio of 2.93.
The Consumer Products – Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 139, which puts it in the bottom 45% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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