- P&G's earnings forecast in spotlight as uncertainty plagues consumer spending
Apr 23, 2025
By Juveria Tabassum
(Reuters) - Procter & Gamble's annual targets will be in focus when the consumer goods bellwether reports third-quarter results on Thursday, with some analysts expecting a forecast cut due to uncertainty around spending amid global trade tensions.
U.S. President Donald Trump's reciprocal tariffs on several trading partners have roiled global markets and raised fears of global retaliation, a potential trade war, renewed inflation and an eventual recession in the United States.
Consumer spending in several categories is expected to remain pressured this year, and for global consumer goods companies such as P&G the threat of even higher prices could affect demand.
Smaller rival Kimberly-Clark lowered its annual profit target on Tuesday and warned that tit-for-tat tariffs could drive up the Kleenex maker's input costs.
"The time has come for the majority of consumer staples companies to cut their earnings forecasts significantly ... investors are looking for visibility and can't find it in the most visible of sectors like consumer staples," RBC Capital Markets analyst Nik Modi said.
While consumer staples have typically performed well during times of economic and market turmoil, more-frequently occurring exogenous shocks were leading to volatility in companies' results and weakening performance consistency for consumer staples, Modi added.
In February, Procter & Gamble executives at an industry conference said the company was willing to adjust its short-term forecast as Trump's tariff policy created some pressure on moving raw materials and finished product across borders at a time when consumers were pulling back on spending.
"With trends moderating across the U.S. and Europe ... we think hitting organic revenue and EPS guidance (for P&G) will prove to be difficult," UBS analyst Peter Grom said last week.
The company in January maintained its fiscal 2025 forecasts of sales growth in the range of 2% to 4%, and annual core earnings between $6.91 and $7.05 per share.
Still, P&G's extensive portfolio of about 80 brands, as well as its recent efforts in introducing new products, such as the Tide Evo detergent, and offering smaller pack sizes, could help provide some protection from weak spending, analysts have said.
"Consumers may be quick to trade down on snacks or skip them altogether, but could be less likely to abandon grooming or personal care brands they've used for years," EMarketer analyst Blake Droesch said.
P&G's third-quarter revenue is expected to drop 0.4% to $20.11 billion, while its earnings per share is expected to rise marginally to $1.53, according to data compiled by LSEG.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Shounak Dasgupta)
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- Is The Procter & Gamble Company (PG) the Best American Dividend Stock to Buy According to Analysts?
Apr 21, 2025
We recently published a list of the 13 Best American Dividend Stocks to Buy According to Analysts. In this article, we are going to take a look at where The Procter & Gamble Company (NYSE:PG) stands against other best American dividend stocks.
Dividend-paying stocks have long benefited investors by delivering consistent and solid returns. During periods of economic uncertainty, they’ve generally performed more reliably than many other types of investments. Because of these qualities, more investors are turning to dividend stocks to take advantage of their compounding potential. This growing optimism has also encouraged several companies to join the dividend club, which was evident in the way tech firms eagerly began issuing dividends in 2024.
According to a report by S&P Dow Jones Indices, dividends paid by the S&P companies reached a new high of $167.6 billion in the fourth quarter of 2024, marking a 6.7% increase from the previous quarter’s $157.0 billion—which itself had set a record. This also represented an 8.7% rise compared to the $154.1 billion paid out in Q4 2023. For the full year, total dividend payments hit an all-time high of $629.6 billion in 2024, up 7.0% from the $588.2 billion distributed in 2023. The report further mentioned that the indicated dividends for the top 20 companies in the S&P index amounted to over $141 billion.
Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices, made the following comment about dividends:
“Under an increased tax, some of the expenditures may shift from buybacks to dividends. However, any shift was not seen as being on a dollar-for-dollar basis as dividends remain a long-term pure cash-flow item which must be incorporated into corporate budgets.”
Dividends have played a key role in driving overall returns from equity investments over the long haul. This was emphasized in a study by London-based Guinness Global Investors, which examined the broader market’s performance dating back to 1940. According to their analysis, dividends and reinvested payouts made up about 94% of the index’s total return during that time. To put it in perspective, a $100 investment made at the end of 1940 would have grown to roughly $525,000 by the end of 2019 if dividends were reinvested, compared to just $30,000 if the dividends had simply been taken as cash.
The report also pointed out that dividends become a more significant part of total returns the longer an investment is held. Since 1940, for the broader market, dividends have made up about 27% of total returns over a typical one-year holding period. Stretching that to three years, their contribution rises to 36%. Over five years, it climbs to 40%, and over ten years, it reaches 47%. For investors who hold their positions for twenty years, dividends end up accounting for around 57% of the total returns. Due to this performance, analysts also recommend investing in dividend stocks.
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Is The Procter & Gamble Company (PG) the Best American Dividend Stock to Buy According to Analysts?
A happy couple viewing the products of this household and personal product company in a mass merchandiser store.
Our Methodology:
We created this list by scanning Insider Monkey’s Q4 2024 database for US companies that have strong dividend policies and are traded on American stock exchanges. From that group, we further refined our selection criteria by identifying stocks with a projected upside potential of over 5% based on analyst price targets, as of April 20. The stocks are ranked according to their upside potential.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
The Procter & Gamble Company (NYSE:PG)
Upside Potential as of April 20: 5.42%
The Procter & Gamble Company (NYSE:PG) is an Ohio-based multinational consumer goods company that offers a wide range of related products and services to its consumers. The company’s biggest strengths are its massive scale and dominance across numerous product categories and brands, which help offset potential risks. As one of the world’s largest players in everyday personal and household goods, the company offers a wide range of top-selling brands spanning beauty, grooming, health, home care, fabric care, baby products, and more.
What sets The Procter & Gamble Company (NYSE:PG) apart is that it isn’t dependent on any one brand, product line, or region. Its broad diversification works in its favor. The company also has a strong history of managing expenses efficiently and, when needed, passing on higher costs to consumers. The stock has surged by nearly 3% since the start of 2025, and its 12-month return came in at over 6%.
The Procter & Gamble Company (NYSE:PG) is a strong dividend payer, which has been grabbing investors’ attention for quite a while now. On April 8, the company declared a 5% hike in its quarterly dividend to $1.0568 per share. Through this increase, the company stretched its dividend growth streak to 69 years, which makes it one of the best dividend stocks. Supported by strong financial performance, the company produced $4.8 billion in operating cash flow for the quarter, with a free cash flow productivity rate of 84%. It also returned $2.4 billion to shareholders through dividend payments, further cementing its status as a leading choice for long-term investors. As of April 20, the stock has a dividend yield of 2.48%.
Overall, PG ranks 12th on our list of the best American dividend stocks according to analysts. While we acknowledge the potential of PG as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than PG but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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- Jim Cramer Says The Procter & Gamble Company (PG) May Blow Numbers Away
Apr 21, 2025
We recently published a list of Jim Cramer’s Game Plan for Next Week: 25 Stocks in Focus. In this article, we are going to take a look at where The Procter & Gamble Company (NYSE:PG) stands against other stocks that Jim Cramer discussed.
On Thursday, Jim Cramer, the host of Mad Money, walked viewers through what he described as an important week ahead for Wall Street, with earnings season hitting full stride and a flood of quarterly reports expected from companies spanning multiple sectors.
“The fact is the president wants lower interest rates to help offset the pain from higher prices that gonna be caused by the tariffs, but higher prices represent inflation.”
READ ALSO: 12 Stocks on Jim Cramer’s Radar Recently and Jim Cramer Discussed These 12 Stocks Recently.
“The Federal Reserve never cuts rates when inflation’s out of control,” Cramer emphasized and added that it may very well become the case if tariffs continue to drive up costs. He made it clear that he respects Fed Chair Jerome Powell as he described him as a capable public servant who, in Cramer’s words, has “generally done a good job.” Still, he acknowledged Powell’s difficult position as he said the Fed chair is “stuck between a rock and a hard place.” He added:
“Now history says he should be doing exactly what he’s doing, but history is now in the eye of the beholder and there’s only one beholder in this whole country and it ain’t Jay Powell.”
While Cramer stopped short of diving deeper into political commentary, he admitted he is growing increasingly weary of the political noise surrounding monetary policy. As earnings reports begin to dominate the conversation, he highlighted how swiftly sentiment on Wall Street can shift based on results and noted that the market is entering a phase where “snap judgments” start flooding in after hours.
“Here’s the bottom line: I know it’s supposed to be a terrible time, right? I mean like woo, scary, but I don’t know. The companies themselves they keep delivering and delivering, and you know what? I don’t think next week’s going to be any different.”
Our Methodology
For this article, we compiled a list of 25 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 17. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Jim Cramer Says The Procter & Gamble Company (PG) May Blow Numbers Away
A happy couple viewing the products of this household and personal product company in a mass merchandiser store.
The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 79
Cramer commented on The Procter & Gamble Company (NYSE:PG) and said:
“Now we had a rotation in the soft goods going on today, and I don’t know if it’s going to last, but if it does, then there is a chance that Procter & Gamble will, when it reports, blow the numbers away. By the way, they really benefit from the weaker dollar. I know all the buzzing heads say, listen, weaker dollar bad. But again, as I emphasize almost every night, because they keep emphasizing, it’s good for our companies…. They used to be recession-resistant, but Procter does a lot of business in China. PepsiCo’s got potato chips that have become too expensive.”
Procter & Gamble (NYSE:PG) provides a broad selection of consumer goods, including products for beauty, grooming, health care, home care, and personal care, all under well-known brands.
Overall, PG ranks 17th on our list of stocks that Jim Cramer discussed. While we acknowledge the potential of PG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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- Why The Procter & Gamble Company (PG) is the Best Cosmetics Stock to Buy for 2025
Apr 18, 2025
We recently published a list of 12 Best Cosmetics Stocks to Buy for 2025. In this article, we are going to take a look at where The Procter & Gamble Company (NYSE:PG) stands against other best cosmetics stocks to buy for 2025.
Overview of the Cosmetics Industry
According to Grand View Research, the global cosmetics industry has a market size of around $295.95 billion as of 2023. It is expected to grow at a compound annual growth rate of 6.1% between 2024 and 2030. The primary driver of this growth is the rising awareness among consumers about improving their external appearance. Products such as makeup, hair care, skin care, and color cosmetics have become essential parts of everyday life, leading to their increased demand. Another factor supporting market expansion in this sector is the introduction of non-toxic, natural, and organic cosmetic products.
The online cosmetics market is reflecting similar trends. According to a report by Mordor Intelligence, the online cosmetics market had a size of $16.23 billion in 2025. It is expected to grow at a compound annual growth rate of 8.47% between 2025 and 2030, reaching $24.37 billion at the end of the forecast period.
READ ALSO: 15 Best Blue Chip Stocks to Buy According to Billionaires and Top 10 Restaurant Stocks to Buy Under $20.
What Would Trump’s Tariffs Mean for the American K-Beauty Cosmetic Industry?
South Korea takes the lead for cosmetic imports, but a 25% tariff could be imposed on the country if President Trump decides to give the green signal after a 90-day pause on a majority of his new reciprocal tariffs. On April 16, CBS News reported that the US imported more than $7.5 billion in cosmetics last year, according to estimates made by the US International Trade Commission. Around $1.7 billion of these imports came from South Korea, as American retailers are seeing a significant boom in the K-beauty industry with the sale of Korean skincare, hair care, and makeup products. This trend is partly emerging due to social media influencers consistently promoting K-beauty products.
However, the imposition of Trump’s tariffs could result in a significant price hike for these products, which is why consumers are “panic-buying” their favorite Korean products, according to CBS News. These trends are also proving worrisome to the Personal Care Products Council, a trade association representing more than 600 brands such as Estée Lauder, Procter & Gamble, L’Oréal, and Neutrogena.
The association said in a statement that it is particularly “concerned about trade policies that could result in higher prices for personal care products,” adding that US consumers use “about six to 12 products each day, including sunscreen, toothpaste, shampoo, moisturizer, and fragrance.”
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Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 40 cosmetics stocks and chose the top 12 most popular among hedge funds as of Q4 2024. The list is ordered in ascending order of hedge fund sentiment. We sourced the hedge fund sentiment data from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).Procter & Gamble Company (PG): Among the Best Dividend Monarchs to Invest in Now
A happy couple viewing the products of this household and personal product company in a mass merchandiser store.
The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 79
The Procter & Gamble Company (NYSE:PG) provides branded consumer packaged goods to consumers across the globe. Its operations are divided into Fabric & Home Care, Grooming, Beauty, Health Care, Feminine & Family Care, and Baby. The company boasts a strong portfolio of brands, which includes reputable names such as Head & Shoulders, Pantene, Old Spice, Olay, Herbal Essences, Safeguard, Tide, Always, Venus, Oral-B, Ariel, Crest, Tampax, and others. The Procter & Gamble Company (NYSE:PG) sells its products in around 180 countries and territories.
In a report released on April 9, Dara Mohsenian from Morgan Stanley maintained a Buy rating on The Procter & Gamble Company (NYSE:PG) and set a price target of $191.00.
The Procter & Gamble Company (NYSE:PG) has a strong innovation pipeline and is leveraging AI and advanced technologies to optimize media buying, advertising development, and supply chain operations. The Wall Street Journal’s Natasha Khan and Sharon Terlep report showed that the company overtook Unilever by focusing on its largest brands and improving their efficacy. The Procter & Gamble Company (NYSE:PG) is in the strongest position to weather a turbulent year among its competitors, according to the report.
Overall, PG ranks 1st on our list of the best cosmetics stocks to buy for 2025. While we acknowledge the potential for PG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PG but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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- Colgate-Palmolive (CL) Reports Next Week: What Awaits?
Apr 18, 2025
Colgate-Palmolive (CL) is expected to deliver flat earnings compared to the year-ago quarter on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 25. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This consumer products maker is expected to post quarterly earnings of $0.86 per share in its upcoming report, which represents no change from the year-ago quarter.
Revenues are expected to be $4.88 billion, down 3.7% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
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Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Colgate-Palmolive?
For Colgate-Palmolive, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.79%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Colgate-Palmolive will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Colgate-Palmolive would post earnings of $0.89 per share when it actually produced earnings of $0.91, delivering a surprise of +2.25%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Colgate-Palmolive doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Among the stocks in the Zacks Consumer Products - Staples industry, Procter & Gamble (PG) is soon expected to post earnings of $1.54 per share for the quarter ended March 2025. This estimate indicates a year-over-year change of +1.3%. This quarter's revenue is expected to be $20.34 billion, up 0.7% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for P&G has been revised 0.9% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.97%, reflecting a lower Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that P&G will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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- P&G (PG) Q3 Earnings on the Horizon: Analysts' Insights on Key Performance Measures
Apr 18, 2025
In its upcoming report, Procter & Gamble (PG) is predicted by Wall Street analysts to post quarterly earnings of $1.54 per share, reflecting an increase of 1.3% compared to the same period last year. Revenues are forecasted to be $20.34 billion, representing a year-over-year increase of 0.7%.
The consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Bearing this in mind, let's now explore the average estimates of specific P&G metrics that are commonly monitored and projected by Wall Street analysts.
The combined assessment of analysts suggests that 'Net sales- Beauty' will likely reach $3.52 billion. The estimate indicates a year-over-year change of -0.9%.
According to the collective judgment of analysts, 'Net sales- Grooming' should come in at $1.54 billion. The estimate suggests a change of -0.2% year over year.
The consensus estimate for 'Net sales- Corporate' stands at $138.87 million. The estimate suggests a change of +8.5% year over year.
Analysts' assessment points toward 'Net sales- Fabric & Home Care' reaching $7.27 billion. The estimate points to a change of +1.4% from the year-ago quarter.
Analysts forecast 'Net sales- Baby, Feminine & Family Care' to reach $5.01 billion. The estimate suggests a change of +1.4% year over year.
Based on the collective assessment of analysts, 'Net sales- Health Care' should arrive at $2.92 billion. The estimate points to a change of +1.6% from the year-ago quarter.
Analysts predict that the 'Earnings before income taxes- Beauty' will reach $781.26 million. Compared to the present estimate, the company reported $753 million in the same quarter last year.
The average prediction of analysts places 'Earnings before income taxes- Grooming' at $401.57 million. The estimate is in contrast to the year-ago figure of $379 million.
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Analysts expect 'Earnings before income taxes- Health Care' to come in at $721.75 million. The estimate is in contrast to the year-ago figure of $687 million.
The collective assessment of analysts points to an estimated 'Earnings before income taxes- Fabric & Home Care' of $1.78 billion. Compared to the present estimate, the company reported $1.69 billion in the same quarter last year.
It is projected by analysts that the 'Earnings before income taxes- Baby, Feminine & Family Care' will reach $1.35 billion. The estimate compares to the year-ago value of $1.30 billion.
View all Key Company Metrics for P&G here>>>
Over the past month, shares of P&G have returned +1.8% versus the Zacks S&P 500 composite's -6.9% change. Currently, PG carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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- Procter & Gamble Company (The) (PG) Is a Trending Stock: Facts to Know Before Betting on It
Apr 18, 2025
Procter & Gamble (PG) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this world's largest consumer products maker have returned +1.8% over the past month versus the Zacks S&P 500 composite's -6.9% change. The Zacks Consumer Products - Staples industry, to which P&G belongs, has gained 1.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, P&G is expected to post earnings of $1.54 per share, indicating a change of +1.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.9% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $6.87 points to a change of +4.3% from the prior year. Over the last 30 days, this estimate has changed -0.8%.
For the next fiscal year, the consensus earnings estimate of $7.27 indicates a change of +5.8% from what P&G is expected to report a year ago. Over the past month, the estimate has changed -1.2%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for P&G.
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The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS12-month consensus EPS estimate for PG _12MonthEPSChartUrl
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For P&G, the consensus sales estimate for the current quarter of $20.34 billion indicates a year-over-year change of +0.7%. For the current and next fiscal years, $84.94 billion and $87.53 billion estimates indicate +1.1% and +3.1% changes, respectively.
Last Reported Results and Surprise History
P&G reported revenues of $21.88 billion in the last reported quarter, representing a year-over-year change of +2.1%. EPS of $1.88 for the same period compares with $1.84 a year ago.
Compared to the Zacks Consensus Estimate of $21.6 billion, the reported revenues represent a surprise of +1.33%. The EPS surprise was +1.08%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
P&G is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about P&G. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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- Procter & Gamble (PG) Earnings Expected to Grow: Should You Buy?
Apr 17, 2025
Wall Street expects a year-over-year increase in earnings on higher revenues when Procter & Gamble (PG) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 24. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This world's largest consumer products maker is expected to post quarterly earnings of $1.54 per share in its upcoming report, which represents a year-over-year change of +1.3%.
Revenues are expected to be $20.34 billion, up 0.7% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.99% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Story Continues
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for P&G?
For P&G, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.15%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that P&G will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that P&G would post earnings of $1.86 per share when it actually produced earnings of $1.88, delivering a surprise of +1.08%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
P&G doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Kimberly-Clark (KMB), another stock in the Zacks Consumer Products - Staples industry, is expected to report earnings per share of $1.89 for the quarter ended March 2025. This estimate points to a year-over-year change of -6%. Revenues for the quarter are expected to be $4.86 billion, down 5.5% from the year-ago quarter.
The consensus EPS estimate for Kimberly-Clark has been revised 0.3% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.73%.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Kimberly-Clark will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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- Are Positive Trends Powering Procter & Gamble Ahead of Q3 Earnings?
Apr 17, 2025
The Procter & Gamble Company PG, also known as P&G, is set to report third-quarter fiscal 2025 results on April 24, before the opening bell. The company is expected to have witnessed year-over-year sales and earnings growth in the to-be-reported quarter.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $20.3 billion, indicating a 0.7% rise from the prior-year quarter’s figure. The consensus mark for PG’s fiscal third-quarter earnings is pegged at $1.55 per share, indicating 2% growth from the year-ago quarter’s actual. The consensus mark has moved down by a penny in the past seven days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The Cincinnati, OH-based company has consistently delivered steady earnings, evidenced by its bottom-line beat trend over the past 10 quarters. PG has a trailing four-quarter earnings surprise of 3%, on average, including a 1.08% surprise in the most recent quarter. With this record, the question is whether PG can sustain this momentum.
PG’s Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Procter & Gamble this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Procter & Gamble has an Earnings ESP of -1.42% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Trends to Watch Ahead of PG's Q3 Earnings
Procter & Gamble continues to assert its global market leadership by leveraging its strong brand portfolio to fuel organic sales growth. As a producer of everyday consumer goods, P&G’s recent success reflects its strategic execution and brand power. These ongoing trends are expected to have supported continued organic sales growth in the fiscal third quarter.
PG’s organic sales for the fiscal third quarter are anticipated to have benefited from strong pricing strategies, a favorable product mix and robust segmental performances.
Our model predicts year-over-year organic sales growth of 3.2% for P&G in the third quarter of fiscal 2025. Organic sales are expected to rise 4% each for the Beauty, Health Care and Baby, Feminine & Family Care segments, 3% for the Grooming and 2% for the Fabric & Home Care segment.
P&G has been actively implementing cost-saving initiatives and productivity enhancements to strengthen margins and reinforce its competitive edge. The company's strategic focus on driving efficiency while navigating macroeconomic cost pressures has played a key role in sustaining balanced growth across both revenues and earnings. These ongoing efforts are expected to have aided margins in the to-be-reported quarter.
We expect PG's core gross margin for the fiscal third quarter to have been influenced by significant productivity savings. Our model predicts a year-over-year core gross margin expansion of 150 bps for the to-be-reported quarter.
Story Continues
Procter & Gamble Company (The) Price and EPS SurpriseProcter & Gamble Company (The) Price and EPS Surprise
Procter & Gamble Company (The) price-eps-surprise | Procter & Gamble Company (The) Quote
However, Procter & Gamble continues to navigate several challenges, including market pressures in Greater China, geopolitical tensions and currency volatility. Among these, the situation in Greater China, P&G’s second-largest market, has been particularly pronounced, with a tough macroeconomic climate leading to a notable decline in consumer spending.
The company has also encountered brand-specific headwinds, especially with its flagship beauty brand SK-II, which has faced setbacks linked to its Japanese heritage. Additionally, heightened geopolitical tensions in certain regions have further weighed on consumer sentiment and dampened retail activity, compounding the broader market challenges.
On the last reported quarter’s earnings call, the company expected the global environment to remain volatile and challenging throughout fiscal 2025, relating to input costs, currencies, consumers, competitors, retailers and geopolitical dynamics. These are anticipated to have affected its performance in the fiscal third quarter.
Rising supply-chain costs, inflationary pressures and elevated transportation expenses have been driving up SG&A costs for Procter & Gamble. We estimate core SG&A expenses to grow 3.6% year over year for the fiscal third quarter. As a percentage of sales, core SG&A expenses are expected to increase 10 bps for the fiscal third quarter.
Price Performance & Valuation
PG shares have exhibited an uptrend in the past three months, recording growth of 3.3%. However, the leading consumer goods company’s shares have underperformed the industry and the Zacks Consumer Staples sector’s growth of 4.3% and 7.7%, respectively. Meanwhile, the stock has outperformed the S&P 500’s 10.4% decline.
PG's Three-Month Stock PerformanceZacks Investment Research
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At the current price of $166.39, Procter & Gamble is trading close to its 52-week low of $153.52. This represents an 8.4% premium to the 52-week low mark.
From the valuation standpoint, PG is trading at a forward 12-month P/E multiple of 23.04X, exceeding the industry average of 20.94X and the S&P 500’s average of 19.85X. Procter & Gamble’s valuation appears quite pricey.
Given the premium valuation, investors could face significant risks if the company's future performance does not meet expectations. The consumer goods market is becoming increasingly competitive, and Procter & Gamble’s innovation and market expansion may not suffice to drive significant growth. Macroeconomic challenges and heightened competition could impede the company's ability to sustain its current growth trajectory.Zacks Investment Research
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Stocks With the Favorable Combination
Here are some companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
BJ's Wholesale Club BJ currently has an Earnings ESP of +2.09% and a Zacks Rank of 2. The company is likely to register an increase in the top and bottom line when it reports first-quarter fiscal 2025 numbers. The consensus mark for revenues is pegged at $5.2 billion, which implies growth of 5.3% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ’s quarterly earnings has moved up a penny in the past 30 days to 91 cents per share, indicating an increase of 7.1% from the prior-year quarter. BJ delivered an earnings surprise of 12% in the trailing four quarters, on average.
Church & Dwight Co. CHD currently has an Earnings ESP of +0.66% and a Zacks Rank of 3. The company is expected to register an increase in its top line when it reports first-quarter 2025 numbers. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.5 billion, which indicates growth of 0.6% from the prior-year quarter’s figure.
The consensus mark for Church & Dwight’s quarterly earnings has been unchanged in the past 30 days at 89 cents per share. The estimate indicates a decline of 7.3% from the year-ago quarter. CHD delivered an earnings surprise of 9.6% in the trailing four quarters, on average.
Tyson Foods TSN currently has an Earnings ESP of +2.35% and a Zacks Rank of 3. TSN is likely to register top and bottom-line growth when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $13.1 billion, indicating 0.2% growth from the figure in the year-ago quarter.
The consensus estimate for Tyson Foods’ fiscal second-quarter earnings is pegged at 85 cents per share, implying 37.1% growth from the year-earlier quarter. The consensus mark has declined 3.4% in the past 30 days. TSN delivered a negative earnings surprise of 52% in the trailing four quarters, on average.
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Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
Tyson Foods, Inc. (TSN) : Free Stock Analysis Report
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- Procter & Gamble (PG) Stock Moves -1.23%: What You Should Know
Apr 16, 2025
Procter & Gamble (PG) closed the most recent trading day at $166.39, moving -1.23% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.24%. Meanwhile, the Dow experienced a drop of 1.73%, and the technology-dominated Nasdaq saw a decrease of 3.07%.
Shares of the world's largest consumer products maker witnessed a gain of 0.45% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 1.31% and outperforming the S&P 500's loss of 4.17%.
The investment community will be closely monitoring the performance of Procter & Gamble in its forthcoming earnings report. The company is scheduled to release its earnings on April 24, 2025. On that day, Procter & Gamble is projected to report earnings of $1.55 per share, which would represent year-over-year growth of 1.97%. In the meantime, our current consensus estimate forecasts the revenue to be $20.34 billion, indicating a 0.7% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.89 per share and revenue of $84.94 billion. These totals would mark changes of +4.55% and +1.08%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Procter & Gamble. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.61% fall in the Zacks Consensus EPS estimate. Currently, Procter & Gamble is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Procter & Gamble is holding a Forward P/E ratio of 24.47. This denotes a premium relative to the industry's average Forward P/E of 20.13.
We can additionally observe that PG currently boasts a PEG ratio of 4.05. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Consumer Products - Staples industry currently had an average PEG ratio of 3.4 as of yesterday's close.
Story Continues
The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PG in the coming trading sessions, be sure to utilize Zacks.com.
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Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
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