Cincinnati, Ohio-based The Procter & Gamble Company (PG) manufactures and markets consumer products. With a market cap of $415.1 billion, the company’s product portfolio comprises conditioners, shampoos, blades and razors, toothbrushes, toothpaste, 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 Procter & Gamble definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the household and personal products industry.
Procter & Gamble leverages its strong brand portfolio, featuring top names like Tide and Pampers, to maintain a loyal customer base and steady revenue. This brand strength allows for premium pricing, strengthening PG's competitive position.
PG touched its 52-week high of $176.55 in the last trading session. Over the past three months, PG stock gained 5.7%, underperforming the Consumer Staples Select Sector SPDR Fund’s (XLP) 6.9% gains during the same time frame.
In the longer term, shares of PG rose 19.7% in 2024, outperforming XLP’s YTD gains of 15.5%. However, the stock climbed 15.1% over the past 52 weeks, underperforming XLP’s 16.3% returns over the same time frame.
However, PG has mostly traded above its 50-day and 200-day moving averages since mid-April, with slight fluctuations recently, indicating a bullish trend.
PG’s underperformance can be linked to looming inflationary pressures, and recent price increases, which have boosted sales but resulted in lower purchase volumes as consumers bought fewer products. Weak market conditions and subdued demand in China, a key market for PG, have also impacted the company's performance.
On Aug. 12, PG shares fell more than 2% on signs of insider selling after an SEC filing showed CEP Moeller sold $12.2 million shares of the stock.
Moreover, on Jul. 30, PG shares closed down more than 4% after reporting its Q4 earnings results. Its revenue of $20.5 billion was below the consensus of $20.7 billion. Its non-GAAP EPS increased 2.2% year over year to $1.40.
In the competitive arena of household & personal products, Colgate-Palmolive Company (CL) has taken the lead over PG, showing resilience with a 36.2% uptick on a YTD basis and a solid 49.1% gain over the past 52 weeks.
Wall Street analysts are moderately bullish on PG’s prospects. The stock has a consensus “Moderate Buy” rating from the 26 analysts covering it, and the mean price target of $176.75 suggests a marginal potential upside from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
