The Procter & Gamble Company (NYSE:PG) is included among the 12 Best Stocks to Buy for the Long Term.
On January 27, TD Cowen downgraded The Procter & Gamble Company (NYSE:PG) to Hold from Buy and raised its price target to $156 from $150. The firm warned that the company’s recovery is likely to be prolonged. According to the analyst, bullish investors have been holding the stock with the belief that Procter’s organic sales growth hit a low point in Q2 2025 at 0% and would recover as comps ease and market share begins to recover. TD Cowen, however, expects growth to “remain moderate” at around 2% over the next two years, citing limited pricing power and continued pressure on the Hispanic consumer.
That cautious view follows a mixed second quarter. Revenue was slightly below Wall Street expectations as lower spending by U.S. consumers and the impact of the government shutdown offset stronger growth in international markets. On the earnings side, adjusted earnings beat estimates, helped by strong demand for P&G’s high-end beauty and hair care products. As an indicator of the consumer goods industry, the company’s mixed results are closely watched as a sign of the health of the sector overall.
The US government shutdown hit P&G’s largest market hard. Delays in food assistance payments in October and November put pressure on low-income households already facing high prices and a slow labor market. Chief Financial Officer Andre Schulten said in early December that sales were down across all categories in the United States due to the shutdown.
Sales volumes fell in three of the five categories reported by P&G and rose only in beauty, which stood out over the past year as consumers continue to spend on personal care. Overall volumes were well below the typical U.S. growth range of about 3% to 4% across all categories, Schulten noted.
For the three months ended Dec. 31, P&G reported net sales of about $22.21 billion, up about 1% year over year but slightly below the $22.28 billion analysts were expecting, according to LSEG data. Core gross margin declined for the fifth consecutive quarter, pressured in part by tariffs and investments to offer a broader range of package sizes aimed at cost-conscious consumers.
The Procter & Gamble Company (NYSE:PG) is a global consumer staples company focused on selling brand-name packaged goods to consumers around the world.
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