Why Procter & Gamble Stock Is Down 22% This Year
Investors are worried about a recession on the way, and that's normally a time when Wall Street flocks toward sturdy dividend payers like Procter & Gamble (NYSE: PG). The consumer staples giant has endured many downturns over the decades thanks to its dominant market position and its huge portfolio of essential brands and products.
But P&G stock is struggling to keep pace with the market, down about the same 22% as the S&P 500 through mid-October. It is even trailing its smaller rival Kimberly-Clark (NYSE: KMB). Let's look at why investors are feeling cautious about Procter & Gamble stock, and whether that price slump represents a good opportunity to buy.
P&G gave investors a mixed reading on its business in its last earnings report. Sure, organic sales expanded by 7% in the fiscal fourth quarter, matching the healthy growth rate for the wider fiscal year that closed in late June. But look behind that headline growth figure and you'll see some areas of concern.
Source Fool.com
