Argus Downgrades P&G Stock Rating Amid Slowing Growth
Argus has downgraded Procter & Gamble's stock rating to 'Hold' from 'Buy', citing underperformance and slower growth. Over the past quarter, the consumer goods company's shares rose 2%, trailing the S&P 500's 6% gain and the 4% advance in the Consumer Staples sector ETF IYK.
Procter & Gamble reported fiscal fourth-quarter 2026 earnings that narrowly beat the consensus estimate but declined 3% from the prior year. Management is guiding for slower growth in fiscal year 2027, citing macroeconomic pressures and geopolitical tensions as contributing factors.
The company's core operating margin has trended lower for the last three quarters, according to Argus. The firm notes that while Procter & Gamble posted earnings of $1.43 per share, which slightly surpassed Wall Street's estimate of $1.42, revenue fell short of expectations at $21.2 billion.
The acquisition of supplements maker Thorne is also on the horizon for Procter & Gamble, with CEO Shailesh Jejurikar stating that the deal aligns with industry benchmarks and reflects Thorne's growth rates.