Procter & Gamble (PG) Plunges 1.82% as Legal Risks and Earnings Concerns Weigh

The Procter & Gamble Company (PG) shares fell to their lowest level since January 2024 on October 14, 2025, with a 1.82% intraday decline, extending a four-day losing streak that has erased 3.31% of its value. The selloff reflects growing investor concerns over legal risks, earnings expectations, and mixed institutional sentiment, despite the company’s entrenched position in the consumer staples sector.

Ongoing legal challenges are amplifying uncertainty. A class-action lawsuit filed in September 2025, alongside Johnson & Johnson and Walgreens, alleges deceptive marketing of decongestant products, citing violations of the FTC’s Green Guides. While the case is in early stages, such litigation risks financial penalties and reputational damage. A separate 2025 greenwashing claim involving Charmin toilet paper, though older, highlights persistent scrutiny over sustainability claims, which could resurface if new allegations emerge.

Financial performance and valuation metrics add to the headwinds. PG’s stock underperformed the S&P 500 and its sector by 5.2% in September 2025, with analysts projecting a 1.55% decline in Q1 2024 earnings per share. The Zacks Rank system assigns a “Sell” rating due to deteriorating earnings estimates, while a forward P/E ratio of 21.43 and a PEG ratio of 3.97 suggest the stock is trading at a premium to growth expectations. Upcoming earnings on October 24 will be critical to restoring confidence, as the company must demonstrate pricing resilience in competitive markets.

Institutional activity reflects a divided outlook. Firms like Aletheian Wealth Advisors and Darwin Wealth Management increased holdings in September 2025, signaling long-term optimism, while others, including Birmingham Capital Management, reduced stakes. Insider sales totaling $24 million in the same period further cloud near-term sentiment, though some investors view the pullback as an opportunity given PG’s strong brand portfolio and consistent dividend history.

Strategic initiatives, including product launches like the Olay Summer Fizz Scent Collection and Swiffer Sweep + Mop Deluxe, aim to drive growth. However, supply chain pressures and intensifying competition in core categories like beauty and household care remain hurdles. The company’s ability to translate innovation into sales will determine whether the current valuation is justified or requires further correction.