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Procter & Gamble (PG) closed at $145.43 in the latest trading session, marking a -0.17% move from the prior day. This move was narrower than the S&P 500’s daily loss of 0.58%.

– Zacks

Prior to today’s trading, shares of the world’s largest consumer products maker had gained 0.72% over the past month. This has outpaced the Consumer Staples sector’s loss of 1.7% and the S&P 500’s gain of 0.16% in that time.

PG will be looking to display strength as it nears its next earnings release. In that report, analysts expect PG to post earnings of $1.58 per share. This would mark a year-over-year decline of 3.07%. Our most recent consensus estimate is calling for quarterly revenue of $19.79 billion, up 2.47% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.94 per share and revenue of $78.97 billion, which would represent changes of +4.95% and +3.74%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for PG. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 past month, the Zacks Consensus EPS estimate has moved 0.07% higher. PG is currently a Zacks Rank #3 (Hold).

In terms of valuation, PG is currently trading at a Forward P/E ratio of 24.54. This valuation marks a premium compared to its industry’s average Forward P/E of 23.98.

Also, we should mention that PG has a PEG ratio of 3.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Soap and Cleaning Materials was holding an average PEG ratio of 4 at yesterday’s closing price.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 251, putting it in the bottom 2% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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