The Procter & Gamble Company (PG) is a leading consumer products maker. Headquartered in Cincinnati, Ohio, PG is known for its extensive portfolio of trusted household brands like Tide, Pampers, Gillette, and Crest. Valued at $397.33 billion by market cap, P&G is also known for its innovation and market leadership across beauty, grooming, health care, and home care categories.
Shares of this consumer goods giant have underperformed the broader market over the last year. The stock has gained 12.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.9%. But in 2024, PG stock is up 14.8%, surpassing SPX’s 11.5% rise on a YTD basis.
Narrowing the focus, PG’s outperformance looks more pronounced this year compared to Consumer Staples Select Sector SPDR Fund (XLP). PG has comfortably outperformed the exchange-traded fund’s 8.2% YTD returns.
On Apr. 19, Procter & Gamble reported its Q3 results, surpassing Wall Street's EPS estimates but missing the revenue consensus. The stock gained marginally on the day it released earnings but closed the following trading session with a 1.5% increase.
For the current fiscal year, ending in June 2024, analysts expect PG’s EPS to grow 11% to $6.55 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 21 analysts covering PG stock, the consensus rating is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, two “Moderate Buys’” and six “Holds.”
This configuration is slightly more bullish than three months ago, with 11 suggesting a “Strong Buy.”
On Apr. 22, Nik Modi from RBC Capital maintained a “Hold” rating on Procter & Gamble with a price target of $157. Fulvio Cazzol from Berenberg Bank also maintained a “Hold” rating on Procter & Gamble with a price target of $156.
The mean price target of $171.76 represents a 2% premium to PG’s current price levels. The Street-high price target of $185 suggests an upside potential of 9.9%.
On the date of publication, Rashmi Kumari 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.
