#2 - Procter & Gamble (NYSE:PG)
Procter & Gamble (NYSE:PG) is the home to some of the world’s most iconic brands, such as Tide, Bounty, and Luvs. The company has rewarded investors with stock price growth of 60% in the last five years. And that goes along with a dividend that has been growing for the last 66 years and pays out $3.65 on an annual basis as of this writing.
The company is set up well to maintain revenue and earnings growth in the face of rising interest rates. For starters, the company has a solid balance sheet with rising free cash flow (FCF). And the company has pricing power that can help maintain its brand loyalty even in the face of competition from private label brands.
Currently, analysts rate PG stock as a Moderate Buy with an 11% upside. That’s understandable for a stock that is trading at a P/E ratio of 25x earnings. However, the stock is still considered to be in-line with the sector’s valuation.
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
- $168.06
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 16 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $180.45 (7.4% Upside)
