Procter & Gamble (PG) is one of the best Dow Jones stocks Wednesday after the consumer products giant beat top- and bottom-line expectations for its fiscal 2025 second quarter and reaffirmed its outlook for 2025.
In the three months ending December 31, Procter & Gamble's revenue increased 2.1% year over year to $21.9 billion. Its earnings per share (EPS) rose 2.2% from the year-ago period to $1.88.
"The P&G team delivered an acceleration in organic sales growth, core EPS growth and strong cash return to shareowners in the second quarter," said CEO Jon Moeller in a statement. "Our first-half results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The company's results topped analysts' expectations. Wall Street was anticipating revenue of $21.5 billion and earnings of $1.86 per share, according to CNBC.
As its CEO stated, P&G reaffirmed its outlook for fiscal 2025. The company expects to achieve revenue growth in the range of 2% to 4% and earnings of $6.91 to $7.05 per share.
Is Procter & Gamble stock a buy, sell or hold?
Procter & Gamble has lagged the broader market over the past 12 months, up 12% on a total return basis (price change plus dividends) vs the S&P 500's nearly 27% gain. But Wall Street remains mostly bullish on one of the best dividend stocks for dependable dividend growth.
According to S&P Global Market Intelligence, the average analyst target price for PG stock is $179.27, representing implied upside of nearly 8% to current levels. Additionally, the consensus recommendation is Buy.
However, not all analysts are upbeat. Financial services firm Stifel, for one, has a Hold rating on the blue chip stock, along with a $161 price target, which sits below where PG is currently trading.
In a January 16 note, Stifel analyst Mark S. Astrachan said he believes PG shares are trading near fair value. "Our Hold rating reflects less expected relative outperformance as comparisons become increasingly difficult, including downside risk from slower sales growth and higher input costs," he added.
Related Content
- Why GE Vernova Stock Is Higher After Its Earnings Miss
- Earnings Calendar and Analysis for This Week
- Analysts' Top S&P 500 Stocks to Buy Now
-
Over 50 and Still Paying Student Loans? Here's Some HelpIt's the club no one wants to join. But if you are over 50 and still paying student loans, there are ways to tackle both debt and retirement savings.
-
Eight Estate Planning Steps to Protect Your Loved Ones (and Your Legacy)Two-thirds of Americans don't have an estate plan. If you're one of them, these are the essential steps to take now to prevent problems for your family later.
-
Eight Estate Planning Steps to Protect Your Loved Ones (and Your Legacy)
Two-thirds of Americans don't have an estate plan. If you're one of them, these are the essential steps to take now to prevent problems for your family later.
-
The Six Pros This Adviser Says You Need to Sell Your BusinessSelling your business isn't as simple as getting the best price and walking away. These are the six professionals you'll need to get a deal across the finish line.
-
The Three C's to Financial Success: A Financial Planner's Guide to Build WealthConsistency, commitment and confidence in your chosen strategy are more critical to your financial success than finding the 'perfect' financial plan.
-
A Financial Adviser's Guide to Solving Your Retirement Puzzle: Five Key PiecesIf retirement's a puzzle you're struggling with, try answering these five questions. The answers will guide you toward a solution.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or RelocateHomeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and FriendsWhat starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
Stock Market Today: Good Feelings and Solid Data Lift StocksResilience and de-escalation defined another generally positive day for financial markets.
