You’ve likely seen these two letters on your laundry detergent, kitchen soap, and even razor blade. Procter & Gamble (NYSE: PG), or P&G for short, has been a giant in the home goods market, ranging from personal care such as shampoos and toothpaste to baby products. While they have previously owned Pringles, they’re currently fully focused on developing their core businesses within products they understand across a wide array of markets.
But even Proctor & Gamble goes through changes throughout its long life span. With a change in leadership along the way, is P&G still a deal for the prospective investor?
Quantitative Analysis: Beating Chores and the Market
The numbers speak for themselves when it comes to Procter & Gamble, with their current 1-year return coming out to an impressive 16.93% with a share price of $160.10 (April 11, 2022). Their longer-term returns are even more impressive, giving shareholders a weighty 80% return on their investment in the last 5 years.
What’s interesting about P&G is also their regularity of Dividend Payout, coming in at a 2.17% yield. With a market beta of 0.44, you can expect P&G to remain stable during larger market turns. As such, their P/E ratio stands a bit high, indicating large market interest in their stock over their trailing EPS.
Qualitative Analysis: The Market Just Can’t Get Enough
Much of their current stock valuation can be explained away as part of the overall market’s enthusiasm for the stock in general. As of a recent posting, the stocks of P&G beat out the market at large during trading close on Friday, climbing 0.78% over the S&P’s -0.27% spill and even the Dow Jones’ 0.40% rise.
Financial analysts Raymond James and Truist Financial have both expressed bullish outlooks for the company, with the latter proclaiming that much of its current business fundamentals remain underappreciated by the market at large.
P&G is likely to be one of the best stocks to pick out for growth and stability over the long term. With so many business fundamentals done right, P&G stands as a monument for what a business can do when adhering to what it does best. Alongside the impressive returns, P&G is also a deal due to its regular dividend payouts, which may please investors looking to build upon their dividend incomes.
Note: Please do not invest money or assets in the financial markets that you cannot afford to lose. This article should not be construed to be investment advice and is for information purposes only