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The Procter & Gamble Company PG, also known as P&G, has displayed a slowdown in the share price performance in the past month, with its stock falling as much as 4.8%. The PG stock’s dismal performance on the bourses is attributed to the company’s soft sales performance in third-quarter fiscal 2025, followed by management’s cautious near-term outlook based on the ongoing market conditions, including a volatile consumer and geopolitical landscape.
The company’s dismal share performance caused it to underperform the broader sector and the S&P 500 index, while it outpaced the Consumer Products - Staples industry. The Consumer Staples sector has declined 3.5% in the past month, but the S&P 500 has rallied 11.4%. Meanwhile, the broader industry has fallen 6% in the past month.
PG’s performance is notably weaker than that of its competitors, The Clorox Company CLX and Unilever Plc UL, which declined 3.4% and 3.1%, respectively, in the past month. The P&G stock has also lagged Albertsons Companies’ ACI growth of 0.9% in the same period.
P&G's One-Month Price Performance
Image Source: Zacks Investment Research
Shares of this Cincinnati, OH-based consumer goods company reached a new 52-week low mark after reporting soft third-quarter fiscal 2025 results on April 24. The current share price of $162.41 reflects a 3.7% premium to its recent 52-week low mark of $156.58. Also, the PG stock reflects a 10% premium from its 52-week high of $180.43.
PG is trading below its 50 and 200-day moving averages, indicating a bearish sentiment at least for the near term. SMA is an essential tool in technical analysis that helps investors evaluate price trends by smoothing out short-term fluctuations. This approach provides a clearer perspective on a stock's long-term direction.
P&G Stock Trades Below 50 & 200-Day Moving Averages
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What Keeps Investors Skeptical About PG?
The recent price action mainly follows a mixed performance in the third quarter of fiscal 2025, highlighted by a 2% decline in sales and modest 1% growth in earnings per share (EPS). The top-line decline was primarily led by weak performances in the Baby, Feminine & Family Care, and Fabric & Home Care segments due to lower volumes and unfavorable currency impacts.
Investor sentiment has been further dampened by management’s cautious near-term outlook, citing ongoing macroeconomic headwinds, volatile consumer behavior and geopolitical uncertainties, all of which have weighed on the stock’s momentum.
Procter & Gamble has revised its fiscal 2025 outlook downward, trimming both sales and earnings guidance. The company expects all-in sales to be flat year over year, while organic sales are projected to grow 2%. This marks a downgrade from its previous forecast of 2-4% all-in sales growth and 3-5% organic sales growth.
On the earnings front, P&G anticipates net EPS to rise 6-8% from the fiscal 2024 reported level of $6.02. Core EPS is expected between $6.72 and $6.82, indicating a 2-4% increase over the prior year’s $6.59. This compares unfavorably with the company’s earlier projection of 10-12% GAAP EPS growth and 5-7% core EPS growth for fiscal 2025.
P&G continues to face cost pressures, including an estimated $200-million after-tax headwind from commodity costs and another $200 million from unfavorable foreign exchange rates, impacting earnings by 16 cents per share. Additionally, the company anticipates a slight drag from net interest income and expenses, while its core effective tax rate is expected to be in line with the prior year.