S&P 500   5,123.41
DOW   37,983.24
QQQ   438.27
Divisive? Not for moviegoers. ‘Civil War’ declares victory at box office.
Israel is quiet on next steps against Iran — and on which partners helped shoot down missiles
Germany's Scholz arrives in China on a visit marked by trade tensions and Ukraine conflict
India's Modi vows to boost social spending, make country into a manufacturing hub ahead of election
Native American-led nonprofit says it bought 40 acres in the Black Hills of South Dakota
Stock market today: Asian stocks track Wall Street's decline as Middle East tensions escalate
Tax Day reveals a major split in how Joe Biden and Donald Trump would govern
S&P 500   5,123.41
DOW   37,983.24
QQQ   438.27
Divisive? Not for moviegoers. ‘Civil War’ declares victory at box office.
Israel is quiet on next steps against Iran — and on which partners helped shoot down missiles
Germany's Scholz arrives in China on a visit marked by trade tensions and Ukraine conflict
India's Modi vows to boost social spending, make country into a manufacturing hub ahead of election
Native American-led nonprofit says it bought 40 acres in the Black Hills of South Dakota
Stock market today: Asian stocks track Wall Street's decline as Middle East tensions escalate
Tax Day reveals a major split in how Joe Biden and Donald Trump would govern
S&P 500   5,123.41
DOW   37,983.24
QQQ   438.27
Divisive? Not for moviegoers. ‘Civil War’ declares victory at box office.
Israel is quiet on next steps against Iran — and on which partners helped shoot down missiles
Germany's Scholz arrives in China on a visit marked by trade tensions and Ukraine conflict
India's Modi vows to boost social spending, make country into a manufacturing hub ahead of election
Native American-led nonprofit says it bought 40 acres in the Black Hills of South Dakota
Stock market today: Asian stocks track Wall Street's decline as Middle East tensions escalate
Tax Day reveals a major split in how Joe Biden and Donald Trump would govern
S&P 500   5,123.41
DOW   37,983.24
QQQ   438.27
Divisive? Not for moviegoers. ‘Civil War’ declares victory at box office.
Israel is quiet on next steps against Iran — and on which partners helped shoot down missiles
Germany's Scholz arrives in China on a visit marked by trade tensions and Ukraine conflict
India's Modi vows to boost social spending, make country into a manufacturing hub ahead of election
Native American-led nonprofit says it bought 40 acres in the Black Hills of South Dakota
Stock market today: Asian stocks track Wall Street's decline as Middle East tensions escalate
Tax Day reveals a major split in how Joe Biden and Donald Trump would govern

Procter & Gamble Is Going To Set A New High 

Procter & Gamble stock price forecast

Key Points

  • Procter & Gamble is a Dividend King worth betting on. 
  • The company is well-positioned for the market and outpacing consensus figures. 
  • The guidance includes increased repurchases that add to capital returns in 2023. 
  • 5 stocks we like better than Procter & Gamble

Procter & Gamble’s NYSE: PG Q3 report echoes news from other Dividend Kings that have reported this week. The report is a shining example of why Dividend Kings, Dividend Aristocrats and dividend growth stocks like Procter & Gamble, Clorox NYSE: CLX and Genuine Parts Company NYSE: GPC are great investments for long-term holders. Not only do they have the foresight to operate their businesses in a manner that sustains annual distribution growth, but they have the operating leverage to roll with the times. 

Today that means cutting costs, improving efficiency and focusing on consumer satisfaction. What this means for PG investors is outperformance, improving margins, robust cash flow and increased guidance. This catalyzes higher share prices, putting this stock on track to set another all-time high soon.  

Procter & Gamble Still Has Pricing Power 

The latest retail sales figure suggests that America’s retailers are losing their grip on pricing power, but that is not true for consumer staples stocks or Procter & Gamble. The company reported $20.07 billion in revenue for the FQ3 period, which is up 3.5% and beat the analysts' consensus by 380 basis points. The gain was driven by strong sales in all segments, led by 9% growth in Healthcare and Fabric & Home. All segments grew at least 6%, underpinned by a 10% system-wide increase in realized prices. A 3% decline in volume offset the increases in prices, Procter & Gamble is not immune to the conditions, but this was not enough to offset pricing and resulted in growth. 

Procter & Gamble was able to widen the margin but not enough to completely offset rising costs and FX headwinds. The gross margin grew by 150 basis points and the operating margin by 40 to drive a 220 basis point increase in adjusted earnings. Adjusted earnings of $1.37 are up from last year's $1.34, beating the Marketbeat.com consensus by 380 basis points. The takeaway is that top-line strength carried through to the bottom line and led to increased guidance. 


Procter & Gamble held its EPS guidance steady due to sustained economic pressures but raised the revenue and cash flow outlook. The company expected revenue growth near 1% compared to the prior -1% to 0% with cash returns rising. The company expects to buy back at least $7.4 billion in shares this year, up $1.4 billion at the low end of the range. The $1.4 billion increase is a 23% premium to the buyback minimum and 0.4% of the market cap. The new minimum is worth 2% this fiscal year, on top of the 2.5% dividend. 

Procter & Gamble’s Dividend Is Worth Every Penny 

Procter & Gamble isn’t the lowest value in the consumer staples sector, and it isn’t the best yield, but the 2.5% in payout is worth every penny of the 25X earnings you pay to get it. Procter & Gamble is among the bluest blue-chip dividend payers and is as reliable as they come. You may find a higher yield with names like Kraft Heinz NASDAQ: KHC, but they come with higher risks. If the sell side can be used as an example, they think the stock is worth buying. The institutions own about 62%, which is a lot for such a widely-held name, and they are buying.

The analysts may also provide a catalyst for higher prices. They view it as a Moderate Buy with a price target that assumes fair value at the current level. The Q3 report may inspire upgrades and/or price target increases that would put the stock at an all-time high, if not higher. 

You want to view the monthly chart for this stock because the daily and weekly are showing a lot of noise. The monthly chart shows a clear uptrend and a market increase after confirming that trend. Assuming the market follows this trend, this stock should reach an all-time high in the next few months. Proctor & Gamble Stock price chart

Should you invest $1,000 in Procter & Gamble right now?

Before you consider Procter & Gamble, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Procter & Gamble wasn't on the list.

While Procter & Gamble currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

13 Stocks Institutional Investors Won't Stop Buying Cover

Which stocks are major institutional investors including hedge funds and endowments buying in today's market? Click the link below and we'll send you MarketBeat's list of thirteen stocks that institutional investors are buying up as quickly as they can.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Kraft Heinz (KHC)
4.2564 of 5 stars
$35.94-1.7%4.45%15.56Hold$40.57
Clorox (CLX)
3.2694 of 5 stars
$141.98-1.9%3.38%225.37Reduce$149.13
Genuine Parts (GPC)
4.3027 of 5 stars
$145.38-0.5%2.75%15.58Hold$168.89
Procter & Gamble (PG)
4.7357 of 5 stars
$155.33-0.3%2.59%26.02Moderate Buy$168.53
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

  • tmhughes.writeon@gmail.com

Contributing Author

Technical and Fundamental Analysis

Experience

Thomas Hughes has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies

Education

Associate of Arts in Culinary Technology

Past Experience

Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights. 


Featured Articles and Offers

Search Headlines: