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Pricing Strategy Aids Procter & Gamble (PG): Stock to Gain
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The Procter & Gamble Company (PG - Free Report) has been gaining from robust pricing and a favorable mix, along with strength across segments. The company’s focus on productivity and cost-saving plans positions it to drive margins in the near term. Continued business investments also bode well.
This led to the bottom line beating the consensus mark for the sixth consecutive quarter in the second quarter of fiscal 2024. Sales and earnings improved year over year. The company’s organic sales grew, driven by robust pricing, along with strength across segments.
Shares of this Zacks Rank #2 (Buy) company have risen 2.1% in the past three months compared with the industry’s 1.8% growth and against the Consumer Staples sector’s decline of 7.4%.
The Zacks Consensus Estimate for PG’s current financial-year sales and earnings indicates growth of 3.5% and 9.3%, respectively, from the year-ago reported number.
Image Source: Zacks Investment Research
Factors Driving Growth
Procter & Gamble’s products play a key role in meeting the daily health, hygiene and cleaning needs of consumers around the world. The company witnessed continued strong momentum in the fiscal second quarter, as reflected by underlying strength in brands and appropriate strategies, which aided organic sales growth.
On an organic basis (excluding the impacts of acquisitions, divestitures and foreign exchange), revenues improved 4% year over year, backed by a 4% rise in pricing and flat product mix and volume. All the company’s business segments reported growth in organic sales. Organic sales rose 1% for Beauty, 9% for Grooming, 6% for Fabric & Home Care, 2% for Health Care and 3% for the Baby, Feminine & Family Care segment.
Procter & Gamble remains focused on productivity and cost-saving plans to boost margins. The company’s continued investment in the business, alongside efforts to offset macro cost headwinds and balance top-line and bottom-line growth, underscores its productivity efforts. PG is witnessing cost savings and efficiency improvements across all facets of the business.
With the supply chain 3.0 program introduced in fiscal 2023, the company is driving improved capacity, greater agility, flexibility, scalability, transparency and resilience, along with greater productivity. The company anticipates benefiting from tailwinds of $800 million after tax in fiscal 2024, attributed to favorable commodity costs.
Procter & Gamble has provided an optimistic view for fiscal 2024. The company anticipates year-over-year all-in sales growth of 2-4% for fiscal 2024. Organic sales are likely to increase 4-5% in fiscal 2024. Core EPS is expected to increase 6-9% year over year to $6.37-$6.43.
Solid demand, brand strength and productivity efforts bode well and will likely help PG stay afloat despite cost headwinds and rising inflation.
Other Stocks to Consider
Some other top-ranked stocks from the broader Consumer Staples space are Colgate-Palmolive (CL - Free Report) , Molson Coors (TAP - Free Report) and Diageo (DEO - Free Report) .
The Zacks Consensus Estimate for Colgate’s current financial-year sales and EPS indicates growth of 3.7% and 8.1%, respectively, from the year-ago reported number. The consensus mark for CL’s EPS has remained unchanged in the past 30 days.
Molson Coors, a global manufacturer and seller of beer and other beverage products, currently carries a Zacks Rank of 2. TAP has a trailing four-quarter earnings surprise of 37.2%, on average.
The Zacks Consensus Estimate for Molson Coors’ current financial year’s sales and EPS indicates growth of 1.4% and 4.2%, respectively, from the year-ago reported figure. The consensus mark for TAP’s EPS has been unchanged in the past 30 days.
Diageo is involved in producing, distilling, brewing, bottling, packaging as well as distributing spirits, wine and beer. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for DEO’s current financial-year sales indicates growth of 5.6% from the year-earlier reported figure. The company’s EPS for the current financial-year earnings indicates a decline of 8.7% year over year. The consensus mark for DEO’s EPS has been unchanged in the past 30 days.
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Pricing Strategy Aids Procter & Gamble (PG): Stock to Gain
The Procter & Gamble Company (PG - Free Report) has been gaining from robust pricing and a favorable mix, along with strength across segments. The company’s focus on productivity and cost-saving plans positions it to drive margins in the near term. Continued business investments also bode well.
This led to the bottom line beating the consensus mark for the sixth consecutive quarter in the second quarter of fiscal 2024. Sales and earnings improved year over year. The company’s organic sales grew, driven by robust pricing, along with strength across segments.
Shares of this Zacks Rank #2 (Buy) company have risen 2.1% in the past three months compared with the industry’s 1.8% growth and against the Consumer Staples sector’s decline of 7.4%.
The Zacks Consensus Estimate for PG’s current financial-year sales and earnings indicates growth of 3.5% and 9.3%, respectively, from the year-ago reported number.
Image Source: Zacks Investment Research
Factors Driving Growth
Procter & Gamble’s products play a key role in meeting the daily health, hygiene and cleaning needs of consumers around the world. The company witnessed continued strong momentum in the fiscal second quarter, as reflected by underlying strength in brands and appropriate strategies, which aided organic sales growth.
On an organic basis (excluding the impacts of acquisitions, divestitures and foreign exchange), revenues improved 4% year over year, backed by a 4% rise in pricing and flat product mix and volume. All the company’s business segments reported growth in organic sales. Organic sales rose 1% for Beauty, 9% for Grooming, 6% for Fabric & Home Care, 2% for Health Care and 3% for the Baby, Feminine & Family Care segment.
Procter & Gamble remains focused on productivity and cost-saving plans to boost margins. The company’s continued investment in the business, alongside efforts to offset macro cost headwinds and balance top-line and bottom-line growth, underscores its productivity efforts. PG is witnessing cost savings and efficiency improvements across all facets of the business.
With the supply chain 3.0 program introduced in fiscal 2023, the company is driving improved capacity, greater agility, flexibility, scalability, transparency and resilience, along with greater productivity. The company anticipates benefiting from tailwinds of $800 million after tax in fiscal 2024, attributed to favorable commodity costs.
Procter & Gamble has provided an optimistic view for fiscal 2024. The company anticipates year-over-year all-in sales growth of 2-4% for fiscal 2024. Organic sales are likely to increase 4-5% in fiscal 2024. Core EPS is expected to increase 6-9% year over year to $6.37-$6.43.
Solid demand, brand strength and productivity efforts bode well and will likely help PG stay afloat despite cost headwinds and rising inflation.
Other Stocks to Consider
Some other top-ranked stocks from the broader Consumer Staples space are Colgate-Palmolive (CL - Free Report) , Molson Coors (TAP - Free Report) and Diageo (DEO - Free Report) .
Colgate-Palmolive, a leading consumer goods company, currently carries a Zacks Rank #2. CL has a trailing four-quarter earnings surprise of 4.2%, on average. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Colgate’s current financial-year sales and EPS indicates growth of 3.7% and 8.1%, respectively, from the year-ago reported number. The consensus mark for CL’s EPS has remained unchanged in the past 30 days.
Molson Coors, a global manufacturer and seller of beer and other beverage products, currently carries a Zacks Rank of 2. TAP has a trailing four-quarter earnings surprise of 37.2%, on average.
The Zacks Consensus Estimate for Molson Coors’ current financial year’s sales and EPS indicates growth of 1.4% and 4.2%, respectively, from the year-ago reported figure. The consensus mark for TAP’s EPS has been unchanged in the past 30 days.
Diageo is involved in producing, distilling, brewing, bottling, packaging as well as distributing spirits, wine and beer. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for DEO’s current financial-year sales indicates growth of 5.6% from the year-earlier reported figure. The company’s EPS for the current financial-year earnings indicates a decline of 8.7% year over year. The consensus mark for DEO’s EPS has been unchanged in the past 30 days.