RobsonPL/iStock Editorial via Getty Images Investment Thesis I last covered The Procter & Gamble Company ( NYSE: PG ) in October 2023 with a buy rating, and the stock has performed well, giving ~10% returns since then. Looking forward, the company's growth prospects look encouraging for the coming year. The company's revenue growth should benefit from easier sales comparisons within the SK-II luxury skincare brand in the Chinese market, which has been a drag on the company's sales over the past few quarters.
In addition, revenue should also benefit from volume growth thanks to abating headwinds from retail inventory destocking, and market share gains through an increase in advertising investments. On the margin front, the company should continue to benefit from operating leverage, cost-saving initiatives, and a favorable cost environment thanks to moderating inflation. P&G's stock is trading below the historical averages and has a good forward dividend yield of 2.
44%, which combined with good revenue and margin growth prospects makes the stock attractive. Hence, I continue my buy rating on PG Stock. P&G's Revenue Analysis and Outlook The company's revenues have been benefiting from price increases and market share gains in the recent years.
In the third quarter of fiscal 2024, the company's revenue continued to benefit from price increases, and market share gains which led to sequential volume recovery within North American, European, Asia Pacific, and Latin American markets .
