Why Procter & Gamble Stock Was Moving Higher Today

Shares of household products giant Procter & Gamble (NYSE: PG) were gaining today after the maker of Crest toothpaste and Gillette razors posted another solid earnings report, edging out analyst estimates.

As of 10:18 a.m. ET, the stock was up 2.7%. Broader gains in the market also likely helped push the stock higher.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »

Image source: Getty Images.

P&G keeps growing

Procter & Gamble said that organic sales, which strips out the impact of foreign exchange, divestitures, and acquisitions in the fiscal second quarter, rose 3% even as it stopped hiking prices, showing it can deliver volume growth, which is more valuable than increasing revenue through price hikes. Organic volume was up 2% in the period, while prices were flat. The baby, feminine, and family care segment was a bright spot, with organic volume and sales up 4%.

Overall revenue rose 2% to $21.9 billion, which was ahead of the consensus at $21.6 billion.

Gross margin fell 30 basis points in the quarter, as 150 basis points of productivity savings were offset by an unfavorable sales mix, increasing commodity costs, and product reinvestments.

Selling, general, and administrative (SG&A) expenses increased 40 basis points due to reinvestments in the business, and core operating margin fell 80 basis points. However, core earnings per share rose from $1.84 to $1.88 as its tax expense fell, beating estimates at $1.86.

CEO Jon Moeller noted an "acceleration in organic sales growth, core EPS, and strong cash return to shareowners."

What's next for Procter & Gamble?

Looking ahead, investors were pleased with the company's guidance called for organic sales growth of 3% to 5% and overall revenue growth of 2% to 4%, better than the consensus at 1.4% growth. It also sees core EPS growth of 5% to 7% at $6.91 to $7.05, which excludes foreign exchange headwinds and is slightly ahead of estimates at $6.93.

Overall, Procter & Gamble is about as reliable of a stock as you'll find, and its track record of steady profit and dividend growth is hard to beat. Its valuation is also reasonable for investors looking for safe stocks.

Should you invest $1,000 in Procter & Gamble right now?

Before you buy stock in Procter & Gamble, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Procter & Gamble wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $863,081!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

Learn more »

*Stock Advisor returns as of January 21, 2025

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.