The Procter & Gamble Company (PG): A Bull Case Theory

We came across a bullish thesis on The Procter & Gamble Company (PG) on Librarian Capital’s Substack. In this article, we will summarize the bulls’ thesis on PG. The Procter & Gamble Company (PG)’s share was trading at $169.89 as of 30^th May. PG’s trailing and forward P/E were 26.97 and 24.27 respectively according to Yahoo Finance.

Procter & Gamble (P&G) continues to offer a compelling opportunity for defensive investors, with shares recently trading just above their 52-week low and reflecting modest market pessimism despite the company’s inherent resilience.

The stock has declined 5.7% since Donald Trump’s announcement of “reciprocal tariffs” in early April and is down 3.0% over the past year. However, since the initiation of a Buy rating in January 2024, shares have returned 10.6%, and previous inclusions in a model portfolio yielded low-single-digit profits.

The current pullback appears driven by a broader sector-wide slowdown in consumer spending since February, which P&G was among the first to reflect in its outlook. Still, Q4 FY25 organic sales growth is guided at +0.5–4.5%, suggesting resilience in a softening environment.

P&G’s predictable cash flows, dominant brand portfolio, and global scale position it as a relative safe haven amid macro uncertainty. Its valuation of ~24x FY25 EPS and 2.6% dividend yield offer an appealing combination of defensiveness and income.

With more conservative expectations already priced in, the stock’s risk/reward profile remains attractive. At $160.90 per share, the forecasted total return is 35% by June 2028, implying a 10.4% internal rate of return. The current environment—where broader consumer confidence is under pressure—may reinforce P&G’s appeal as a steady compounder.

Even amid short-term headwinds, the company’s fundamentals remain intact, and its risk-adjusted return profile offers a favorable setup for long-term investors seeking stability with upside.

The Procter & Gamble Company (PG) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 88 hedge fund portfolios held PG at the end of the first quarter which was 79 in the previous quarter. 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 have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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