#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
The Procter & Gamble Company engages in the provision of branded consumer packaged goods worldwide. The company operates through five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. The Beauty segment offers conditioners, shampoos, styling aids, and treatments under the Head & Shoulders, Herbal Essences, Pantene, and Rejoice brands; and antiperspirants and deodorants, personal cleansing, and skin care products under the Olay, Old Spice, Safeguard, Secret, SK-II, and Native brands.
Read More - Current Price
- $169.54
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 15 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $177.00 (4.4% Upside)
