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

We came across a bullish thesis on The Procter & Gamble Company on Value investing subreddit by  kaskoosek. In this article, we will summarize the bulls’ thesis on PG. The Procter & Gamble Company’s share was trading at $149.90 as of January 28th. PG’s trailing and forward P/E were 21.83 and 21.05 respectively according to Yahoo Finance.

The Procter & Gamble Company provides branded consumer packaged goods worldwide. PG presents a compelling opportunity for investors seeking a low-risk, resilient consumer goods play, despite a trailing P/E of 21.6 that some may view as slightly expensive. The company benefits from a portfolio of iconic, hard-to-replace brands like Gillette and Pampers, and has demonstrated consistent revenue and profit growth over the last five years, even as its stock has traded largely sideways.

PG maintains industry-leading margins of 19–20%, concentrated primarily in the U.S., which provides stability compared to more globally diversified peers like Unilever. Management has historically run a disciplined operation, having rationalized its portfolio pre-COVID by divesting over 100 brands to focus on five core segments, and has delivered a remarkable track record of capital returns, raising dividends annually for 69 consecutive years.

Potential risks include the upcoming CEO transition in January 2026, with the new leader under pressure to reignite growth amid slowing organic sales, modest guidance, and external challenges such as tariffs, FX, and private-label competition, which may affect margins in certain categories. That said, the new CEO has a prior track record within PG, notably in ASEAN and India, and successfully turned around the Fabric & Home Care division post-2019, suggesting capability to deliver results over time.

Catalysts include potential operational improvements under the new CEO, activist investor involvement if needed, and innovation such as the Tide EVO product, as well as tailwinds for premium brands like SKII as luxury consumption recovers in key markets. PG’s valuation, ranging from $130–$144 by various models, offers a reasonable entry, and the combination of stable cash flows, resilient brands, and potential upside from strategic initiatives provides investors with a favorable risk/reward profile.

Previously we covered a bullish thesis on Colgate-Palmolive Company (CL) by Kontra in October 2024, which highlighted its strong global presence, premium brands, and consistent growth as a quality compounder. The company’s stock price has depreciated approximately by 15.15% since our coverage. The thesis still stands as CL maintains pricing power and emerging market exposure. Kaskoosek shares a similar view but emphasizes Procter & Gamble’s U.S.-focused brands and strategic initiatives under a new CEO.

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Disclosure: None.