12 Most Undervalued Dow Stocks to Buy According to Analysts

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5. The Procter & Gamble Company (NYSE:PG)

Price Target Upside: 16.13% 

PE Ratio: 23.36 

The Procter & Gamble Company (NYSE:PG) is advancing a major restructuring and portfolio simplification plan to drive growth amid slowing sales and economic pressures. In September 2025, PG announced it would cut 7,000 jobs, about 6.4% of its global workforce, by mid-2027, primarily in non-manufacturing roles. The move aims to improve productivity, reallocate resources toward innovation, and respond to activist investor demands for cost efficiency and focus on core brands.

The Procter & Gamble Company (NYSE:PG) is also streamlining product lines, particularly in international markets, by reducing variety in certain categories and divesting slower-growing brands. While core markets like the U.S., China, Japan, Canada, and Western Europe show modest organic sales growth, underperforming “enterprise markets” are driving the company’s focus on trimming less profitable segments. Despite these challenges, the corporation continues to support a broad portfolio of trusted brands, including Tide, Pampers, Olay, Gillette, Crest, and Head & Shoulders.

Financially, The Procter & Gamble Company (NYSE:PG) is viewed as undervalued by analysts, with a 12-month price target near $176, suggesting a potential 16% upside from current levels. Analysts project modest earnings growth for fiscal 2026, with EPS expected at $6.99, while revenue remains stable. The business’s reputation for steady dividends and defensive characteristics enhances its appeal in uncertain markets.

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