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Saturday's Featured News Why Procter & Gamble Remains a Buy-and-Hold FavoriteWritten by Thomas Hughes. Published 10/27/2025. 
Key Points - Procter & Gamble is well-positioned to deliver market-beating total returns over the next two to five years.
- A low valuation, high yield, and outlook for sustained revenue and earnings growth underpin the outlook.
- Analysts and institutional trends suggest PG stock bottomed in Q3 2025 and is poised to move higher from there.
Procter & Gamble (NYSE: PG) is a compelling option for long-term total returns: its stock price sits near the low end of its historical P/E range, its yield is near the high end, and its FQ1 2026 results support its outlook for growth, cash flow, and capital returns. What are total returns? Total returns include dividends and share-price appreciation. The stock yields about 2.75% as of late October and could rise 25% or more over the coming years. This upside is supported by the company's business quality and growth, which underpin a healthy balance sheet and robust capital returns, including share repurchases. Share repurchases are important to the stock's outlook because they reduce the share count at a semi-aggressive pace and are unlikely to be suspended in the near term. The dividend is attractive (yield above 2.5%), and Procter & Gamble — a Dividend King with 70 consecutive years of annual increases — has the capacity to continue raising its payout for the foreseeable future. Share buybacks help offset the cost of dividend increases. The payout ratio is a moderate ~65%, in line with peers, and analysts forecast earnings growth. MarketBeat's consensus projects a mid-single-digit EPS CAGR, slightly above revenue growth and roughly matching the company's dividend-growth rate.  Procter & Gamble Rises After Posting Solid Results Procter & Gamble's FQ1 results were solid, beating expectations on both the top and bottom lines, with reported revenue growth of 3.0%. Gains were driven largely by favorable FX translation and pricing, although all segments contributed and some delivered organic growth. Beauty and Grooming produced organic gains, helping drive a 2% organic increase for the business. Margins were another bright spot. The company faced margin pressures but mitigated them better than many expected. The quarter produced $5.4 billion in operating cash flow, $4.8 billion in net earnings, and a 3% increase in adjusted EPS. Adjusted EPS of $1.99 came in well above consensus and suggests the company's guidance is conservative. Procter & Gamble reaffirmed its earnings guidance; the midpoint sits slightly below consensus, implying expected weakness in upcoming quarters to offset Q1 strength. That view, however, may understate the consumer resiliency visible in its own results and in other consumer-focused companies' reports. The likeliest outcome is that Procter & Gamble will outperform in coming quarters, which could prompt improved guidance later in the year. Institutional and Analyst Trends Align With a Bottom for PG Stock Price Analysts and institutional activity suggest PG may have bottomed. Analysts view the stock as a Moderate Buy and expect double-digit upside, while institutions have been net buyers — purchasing more than $2.50 for every $1 sold this year — and now own about 65% of shares outstanding. Reaching the consensus target would put the stock on pace to reach new highs in 2026. The technical picture is positive. The stock jumped about 2.5% in premarket trading on Oct. 24, helping confirm a short-term bottom near $147. If that momentum continues, PG should regain support at the moving-average cluster and could move higher, potentially reaching $170 in early 2026 and all-time highs by midyear. If momentum stalls, PG may trade near late-October levels until a stronger catalyst appears.
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