Procter & Gamble: No Major Incentive To Turn Bullish Before Q1 Earnings

Summary:

  • Procter & Gamble’s stock has outperformed its large-cap staple peers in 2024, but now faces a critical Q1-25 earnings event that could influence future performance.
  • PG has missed topline estimates for three straight quarters now, and the weak organic growth trend may not necessarily reverse in Q1 given a difficult base.
  • PG’s largest product segment-Fabric Care isn’t firing on all cylinders, while its second largest market-China too will likely face challenges.
  • PG’s forward valuations are not prohibitive, particularly in light of the implied operating leverage over the next 3 years.
  • Yet, we also highlight why the PG stock does not represent a good BUY now.

Ariel laundry detergent products isolated on white

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Introduction

Procter & Gamble (NYSE:PG), one of the prominent consumer goods entities in the world, has seen its stock perform rather well this year; all through 2024, it has managed to consistently stay ahead of other


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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