#6 - Procter & Gamble (NYSE:PG)
Lower interest rates are expected to lift consumer staples stocks. However, a stock like Procter & Gamble Inc. (NYSE: PG) has two concerns. First, the company is losing pricing power as consumers have hit their limit. Second, there’s increasing evidence that consumers are turning to private-label brands (i.e., house brands).
PG stock is up slightly over 9% in 2024, but it has been trading in a defined range since the middle of May. This is good for traders who have solid entry and exit points. But it’s not great news for investors who are looking for a strong total return from P&G.
The recent earnings report won’t help matters. On July 30, Procter & Gamble delivered a split report with revenue missing analysts’ expectations and coming in lower YOY. A single rate cut won’t change the company’s fundamentals dramatically, but any shift in consumer sentiment is likely to be bullish for P&G.
About Procter & Gamble
Procter & Gamble Co engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances.
Read More - Current Price
- $159.75
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 16 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $179.75 (12.5% Upside)
