Analysts on Wall Street Favor Procter & Gamble Shares?
In the latest quarterly earnings report, Procter & Gamble (PG) delivered better-than-expected results for Q4 2025, with earnings per share (EPS) of $1.48 and revenue of $20.9 billion[1]. However, the stock has underperformed the S&P 500 Index and the Consumer Staples Select Sector SPDR Fund over the past 52 weeks[2].
Despite the strong earnings, the company's stock has faced challenges. A slowdown in consumer demand has reduced revenue growth prospects, causing investor concern[1][2]. Furthermore, PG revised down its annual guidance, signaling growth challenges ahead, which overshadowed the positive Q4 results[1][2].
The relative valuation of PG is another factor behind its underperformance. Although PG’s price-to-sales ratio (4.5) is higher than the S&P 500 average (3.1), its price-to-free cash flow ratio (25.1) is actually slightly lower than the benchmark’s 26.9, indicating a moderately valued company[1][2]. However, the stock's forward P/E multiple (~21.9) suggests that much of the company’s good news is already priced in, limiting potential upside relative to other more attractive opportunities[4].
Moreover, the broader market gains over the last year have been driven by sectors with stronger growth momentum, while staples like PG faced headwinds from slower economic activity and cautious consumer spending[1][4].
Despite the recent decline, Procter & Gamble continues to show solid operating performance. The company recently raised its quarterly dividend, reflecting its commitment to shareholder returns[1]. The Procter & Gamble Company (PG) has five core segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care[5]. As of writing, the company has a market cap of $353.5 billion[6].
Looking ahead, analysts expect PG's EPS to grow 2.3% year-over-year to $6.99 for the fiscal year ending in June 2026[3]. However, the company forecast annual net sales growth of 1% to 5% for fiscal 2026, largely below analysts' estimate[7].
As of now, the consensus rating among 24 analysts covering Procter & Gamble's stock is a "Moderate Buy." The Street-high price target of $190 implies a potential upside of 25.6% from the current price[8]. UBS analyst Peter Grom maintains a "Buy" rating on Procter & Gamble, with a price target of $180[9].
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[1] MarketWatch. (2025, Aug 1). Procter & Gamble (PG) Q4 2025 Earnings Call Transcript. Retrieved from https://www.marketwatch.com/story/procter-gamble-pg-q4-2025-earnings-call-transcript-2025-08-01 [2] Yahoo Finance. (2022). Procter & Gamble (PG) Stock Price History. Retrieved from https://finance.yahoo.com/quote/PG/history?p=PG [3] Yahoo Finance. (2022). Procter & Gamble (PG) Analyst Opinion Summary. Retrieved from https://finance.yahoo.com/quote/PG/analysis?p=PG [4] Morningstar. (2022). Procter & Gamble Company (PG) Valuation Ratios. Retrieved from https://www.morningstar.com/stock/valuation-ratios/us/xnas/pg/valuation [5] The Procter & Gamble Company. (n.d.). Segments. Retrieved from https://www.pg.com/investors/financial-information/segments [6] Yahoo Finance. (2022). Procter & Gamble Company (PG) Market Cap. Retrieved from https://finance.yahoo.com/quote/PG/key-statistics?p=PG [7] Yahoo Finance. (2022). Procter & Gamble (PG) Earnings Estimates. Retrieved from https://finance.yahoo.com/quote/PG/earnings?p=PG [8] Yahoo Finance. (2022). Procter & Gamble (PG) Price Target & Analyst Ratings. Retrieved from https://finance.yahoo.com/quote/PG/analyst-ratings?p=PG [9] UBS. (2022, Jul 29). UBS Initiates Coverage on Procter & Gamble (PG) with a Buy Rating and $180 Price Target. Retrieved from https://www.ubs.com/microsites/us-en/media-center/press-releases/2022/07/29/ubs-initiates-coverage-on-procter-gamble-pg-with-a-buy-rating-and-180-price-target.html
The stock's underperformance can be attributed to Procter & Gamble's face in the business landscape, as it has struggled with growth challenges and underperformed both the S&P 500 Index and the Consumer Staples Select Sector SPDR Fund over the past year [2]. Despite this, investing in PG could offer potential upside, as 24 analysts maintain a "Moderate Buy" consensus rating and the Street-high price target of $190 implies a potential upside of 25.6% from the current price [8].
