Is The Procter & Gamble Company (PG) the Best Dow Stock?

We recently published a list of The Best and Worst Dow Stocks. In this article, we are going to take a look at where The The Procter & Gamble Company (NYSE:PG) stands against other Dow stocks.

The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well.

It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends.

We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year.

Methodology

In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest.

We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A happy couple viewing the products of this household and personal product company in a mass merchandiser store.

The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 79

Short Interest as of Apr 30, 2025: 0.74%

The Procter & Gamble Company (NYSE:PG) operates as a branded consumer packaged goods provider. It operates in Health Care, Beauty, Baby, Feminine & Family Care, Grooming, and Fabric & Home Care segments. It offers shampoos, shave products, conditioners, toothbrushes, laundry detergents, baby wipes, and other products.

The firm reported its Q3 earnings last week, demonstrating organic revenue growth of 1%. Volume growth remained flat during the quarter, along with the core EPS growth of 1% YoY. This was due to the weak consumer demand across the US market. Aided by productivity improvement of 280 basis points, the core operating margin went up by 90 basis points.

After the release of quarterly results, management updated its guidance for fiscal year 2025. The firm now expects organic sales growth of approximately 2% for the full year. Core EPS is anticipated to be in a range of 2% to 4%.

The Procter & Gamble Company (NYSE:PG) plans to reach free cash flow generation of 90% in 2025. This outlook contains weak consumption conditions and potential tariff impacts. The company will experience some short-term tariff-related headwinds, but the management expects things to normalize over the next couple of years.

Overall, PG ranks 12th on our list of best and worst Dow stocks. While we acknowledge the potential of PG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.