Procter & Gamble (PG) is one of the best Dow Jones stocks Wednesday after the consumer products giant beat top- and bottom-line expectations for its fiscal 2025 second quarter and reaffirmed its outlook for 2025.
In the three months ending December 31, Procter & Gamble's revenue increased 2.1% year over year to $21.9 billion. Its earnings per share (EPS) rose 2.2% from the year-ago period to $1.88.
"The P&G team delivered an acceleration in organic sales growth, core EPS growth and strong cash return to shareowners in the second quarter," said CEO Jon Moeller in a statement. "Our first-half results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year."
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The company's results topped analysts' expectations. Wall Street was anticipating revenue of $21.5 billion and earnings of $1.86 per share, according to CNBC.
As its CEO stated, P&G reaffirmed its outlook for fiscal 2025. The company expects to achieve revenue growth in the range of 2% to 4% and earnings of $6.91 to $7.05 per share.
Is Procter & Gamble stock a buy, sell or hold?
Procter & Gamble has lagged the broader market over the past 12 months, up 12% on a total return basis (price change plus dividends) vs the S&P 500's nearly 27% gain. But Wall Street remains mostly bullish on one of the best dividend stocks for dependable dividend growth.
According to S&P Global Market Intelligence, the average analyst target price for PG stock is $179.27, representing implied upside of nearly 8% to current levels. Additionally, the consensus recommendation is Buy.
However, not all analysts are upbeat. Financial services firm Stifel, for one, has a Hold rating on the blue chip stock, along with a $161 price target, which sits below where PG is currently trading.
In a January 16 note, Stifel analyst Mark S. Astrachan said he believes PG shares are trading near fair value. "Our Hold rating reflects less expected relative outperformance as comparisons become increasingly difficult, including downside risk from slower sales growth and higher input costs," he added.
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