Procter & Gamble Stock Is Shining On Growth Trends

Household products to represent proctor and gamble

Procter & Gamble (NYSE: PG) stock price has been receiving support from its brand recognition and high single-digit growth in revenues. The company’s strategy of offering innovative products along with reinvestments in existing products is working. Strong marketing skills and retail execution is adding to the aggressive growth rate.

Procter & Gamble stock is trading around an all-time high of $126; PG share price grew 37% in the past twelve months. Despite a strong appreciation, PG share price is trading at attractive valuations. Its price to earnings ratio stands in line with the industry average of 25. Moreover, it is also considered a dividend king amid its history of increasing annual dividends in the past 63 successive years.

PG The Procter & Gamble Company daily Stock Chart

More Upside is Likely for Procter & Gamble Stock Price

PG share price upside momentum is backed by several factors such as financial growth, product line and cash returns for investors. The company appears in a strong financial position to enhance investor’s sentiments.

Its sales grew almost 9% year over year in the first quarter of 2020. Organic sales jumped 7% compared to the consensus for 5% growth. The robust organic growth is driven by a 10% increase in the beauty segment and a gain of 9% in the health care segment. On top, its core EPS grew 24% compared to the prior-year period.

Strong Outlook Supports Bullish Sentiments

Procter & Gamble has increased its financial guidance for the full year after posting stronger than expected results. The company now anticipates full-year revenue growth of 3% to 5% while EPS is likely to increase in the range of 5 to 10%. Sustainable financial growth indicates that its cash returns are safe.

David Taylor, Chairman, President, and Chief Executive Officer said, “We will continue executing our strategies of superiority, productivity, constructive disruption and improving P&G’s organization and culture to deliver balanced top-line and bottom-line growth along with strong cash generation in a challenging competitive and macroeconomic environment.”

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siraj sarwar

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.
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