With a market cap of $353.5 billion, The Procter & Gamble Company (PG) is a global leader in branded consumer packaged goods with five core segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. P&G serves consumers worldwide through various retail and professional channels.
Shares of the Cincinnati, Ohio-based company have lagged behind the broader market over the past 52 weeks. PG stock has dropped 10.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained 18.4%. Moreover, shares of P&G are down 10.1% on a YTD basis, compared to SPX’s 7.6% return.
Narrowing the focus, shares of the world’s largest consumer products maker have underperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 3.7% rise over the past 52 weeks.
Despite Procter & Gamble reporting better-than-expected Q4 2025 EPS of $1.48 and revenue of $20.9 billion, shares fell marginally on Jul. 29 due to a disappointing fiscal 2026 outlook. The company forecast annual net sales growth of 1% to 5%, largely below analysts’ estimate, and core EPS guidance of $6.83 to $7.09, only narrowly bracketing the estimate. Additionally, rising tariffs with a $1 billion cost impact and cautious consumer behavior weighed on investor sentiment.
For the fiscal year ending in June 2026, analysts expect PG’s EPS to grow 2.3% year-over-year to $6.99. The company’s earnings surprise history is promising. It beat or met the consensus estimates in the last four quarters.
Among the 24 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, three “Moderate Buys,” and 10 “Holds.”
On Jul. 31, UBS analyst Peter Grom maintained a “Buy” rating on Procter & Gamble and set a $180 price target.
As of writing, the stock is trading below the mean price target of $173.04. The Street-high price target of $190 implies a potential upside of 25.6% 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 solely for informational purposes. This article was originally published on Barchart.com
