Cincinnati, Ohio-based The Procter & Gamble Company (PG) manufactures and markets consumer products. With a market cap of $413.1 billion, the company’s product portfolio comprises conditioners, shampoos, blades and razors, toothbrushes, toothpastes, dish-washing liquids, detergents, surface cleaners and air fresheners, and more.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and PG definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the household & personal products industry. The consumer staples giant specializes in a wide range of personal health/consumer health, personal care and hygiene products.
Despite its notable strength, PG has slipped 2.9% from its 52-week high of $180.43, achieved on Nov. 27. Over the past three months, PG stock declined marginally, outperforming the Consumer Staples Select Sector SPDR Fund’s (XLP) 1.2% dip during the same time frame.
In the longer term, shares of PG rose 19.5% in 2024 outperforming XLP’s YTD gains of 14.5%, while the stock climbed 15.2% over the past 52 weeks, underperforming XLP’s 16.1% returns over the same time frame.
To confirm the bullish trend, PG has traded above its 50-day moving average since late November, and it has been trading above its 200-day moving average since early November.
PG's success can be attributed to its dominant market position, focus on efficiency and cost reduction, and steady performance in North America. The company's holistic approach to strategy sets a positive tone for future growth.
On Oct. 18, PG shares closed down marginally after reporting its Q1 results. Its adjusted EPS of $1.93 surpassed Wall Street expectations of $1.90. The company’s revenue was $21.7 billion, falling short of Wall Street forecasts of $21.9 billion. PG expects full-year adjusted EPS to be between $6.91 and $7.05.
In the competitive arena of household & personal products, Colgate-Palmolive Company (CL) has taken the lead over PG, showing resilience with a 20% uptick over the past 52 weeks. However, PG outperformed CL’s 18.9% YTD gains.
Wall Street analysts are moderately bullish on PG’s prospects. The stock has a consensus “Moderate Buy” rating from the 27 analysts covering it, and the mean price target of $181.85 suggests a potential upside of 3.8% from current price levels.
