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E-Commerce Momentum Builds: Is Digital PG's Next Growth Engine?

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Key Takeaways

  • Procter & Gamble uses digital tools and analytics to deepen consumer connections.
  • PG expands its omnichannel reach through e-commerce, digital ads, and online retail ties.
  • The company's Supply Chain 3.0 and agile teams aim to boost efficiency and speed.

The Procter & Gamble Company (PG - Free Report) is strategically harnessing digital technologies and advanced data analytics to possess deeper consumer insights and foster stronger connections. By leveraging insights from smart products and online interactions, the company can monitor product usage, tailor experiences to individual needs and enhance the overall impact of its marketing strategies.

PG is adopting an omnichannel approach, integrating offline and online retail experiences. The company is deepening its digital connection with shoppers through data-driven strategies and technology-enabled consumer insights. Procter & Gamble’s e-commerce efforts span digital marketing, online retail partnerships and direct-to-consumer initiatives, while also developing and scaling these technologies and platforms across global markets.

PG has increased investments in digital advertising and analytics to improve online visibility and conversion rates. It uses data to optimize product placement on digital shelves, personalize promotions and strengthen search performance. Across its key markets, PG has even appointed specialized e-commerce media agencies to manage brand performance across online platforms.

In a nutshell, Procter & Gamble is committed to organizational evolution, having progressed from a complex, layered structure to fully enabled end-to-end category teams, and now to smaller, agile brand teams empowered by technology to operate faster and with greater consumer focus. This, coupled with Supply Chain 3.0, will transform the way its supply chain operates via automation and digital tools, and is likely to drive efficiency and agility across the organization.

PG’s Peers: How CL & CLX Leverage Digital Strength

Colgate-Palmolive Company (CL - Free Report) and The Clorox Company (CLX - Free Report) are competing with PG.

Colgate is focused on investing in scaling its capabilities in key areas like digital, data and analytics to enhance competitive advantages and drive profitability. CL’s digital initiatives emphasize digital-first commerce, data-driven customer engagement and the transformation of internal operations through technology and employee upskilling. Colgate is stepping up its e-commerce push by enhancing last-mile delivery efficiency and scaling its direct-to-consumer business.

Clorox is harnessing consumer insights and advanced digital capabilities to fuel growth and deliver superior value to its consumers. CLX plans to invest in transformative technologies and processes, and is in the final stages of executing a multi-year digital transformation. This investment began in fiscal year 2022 and includes the replacement of the company's ERP system and transitioning to a cloud-based platform, as well as the implementation of a suite of other digital technologies. Such implementations look to generate efficiencies and transform CLX’s operations in the areas of supply-chain digital commerce, innovation and brand building including a full-scale replacement of its U.S. ERP system. This modernization is part of a broader $560-$580 million investment in transformative technologies.

PG’s Price Performance, Valuation and Estimates

Procter & Gamble’s shares have lost 12.5% year to date compared with the industry’s 12.6% drop.

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Image Source: Zacks Investment Research

From a valuation standpoint, PG trades at a forward price-to-earnings ratio of 20.58X, compared with the industry’s average of 18.37X.

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for PG’s fiscal 2026 and fiscal 2027 EPS reflects year-over-year growth of 2.6% and 5.8%, respectively. The company’s EPS estimate for fiscal 2026 and fiscal 2027 has moved northward in the past 30 days.

Zacks Investment Research
Image Source: Zacks Investment Research

Procter & Gamble carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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