Procter & Gamble Shares Lag Behind Market Performance Amidst Challenges
With a market cap of $373.4 billion, The Procter & Gamble Company (PG) stands as a prominent figure in the global branded consumer packaged goods sector. It offers a diverse range of products in personal care, hygiene, and home care, divided into five segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care.
Recent Stock Performance
Shares of the Cincinnati-based company have struggled compared to the broader market. Over the past 52 weeks, PG has declined by 4%, while the S&P 500 Index ($SPX) has gained 8.6%. Year-to-date, Procter & Gamble’s stock is down by 5.1%, contrasted with SPX’s decrease of 4.2%.
Underperformance Compared to Sector Peers
Narrowing the scope, Procter & Gamble has also lagged behind the Consumer Staples Select Sector SPDR Fund’s (XLP) 6.2% rise in the last year.
Quarterly Earnings Report
The company’s shares fell by 3.7% on April 24 following a 2% year-over-year drop in Q3 2025 net sales to $19.8 billion, which was below expectations. Management revised its fiscal 2025 core EPS guidance to $6.72 – $6.82. They also noted that trade tariffs, particularly a 145% tariff on imports from China, would increase annual costs by $1 billion – $1.5 billion. Additionally, consumer spending saw a slowdown in key U.S. months such as February and March, prompting a revision in the fiscal 2025 net sales growth forecast to flat.
Future Earnings Outlook
For the fiscal year ending in June 2025, analysts project PG’s EPS to grow 2.9% year-over-year to $6.78. Procter & Gamble has shown a solid earnings surprise history, meeting or exceeding consensus estimates in the last four quarters.
Analyst Ratings
Among the 25 analysts covering the stock, there is a consensus rating of “Moderate Buy,” consisting of 13 “Strong Buy” ratings, three “Moderate Buys,” and nine “Holds.” However, this outlook is less optimistic compared to three months ago, when there were 15 “Strong Buy” ratings.
Price Target Adjustments
On April 25, Morgan Stanley’s Dara Mohsenian reduced Procter & Gamble’s price target to $180 while maintaining an “Overweight” rating. Currently, PG is trading below the average price target of $174.87. The highest price target on the Street is $192, indicating a potential upside of 20.7% from the current price.
On the date of publication, Sohini Mondal 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 for informational purposes. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
