We recently published a list of Goldman Sachs Value Stocks: Top 12 Stock Picks. In this article, we are going to take a look at where The Procter & Gamble Company (NYSE:PG) stands against other Goldman Sachs value stocks to invest in.
As we recently discussed in another article, growth stocks are massively overvalued and trading at significant premiums, which is why investment firms advise investors to concentrate on value stocks. Near the end of March 2025, artificial intelligence stocks that had taken the market over by storm faced losses, while undervalued stocks gained momentum. Similarly, hedge fund managers believe that now is the time to invest in value stocks, with cheap equities available across all industries. Banks, energy, consumer durables, healthcare, and media companies offer lucrative investment opportunities.
So, what is value investing? Matthew Fine, portfolio manager at Third Avenue Management, describes it as identifying companies trading at a notable discount to a conservative estimate of their true value. These opportunities often arise when a business, industry, or region faces challenges that cause investors to overreact and assume current difficulties will persist long-term. This pessimism creates chances to invest at attractive valuations. While broader equity markets currently appear overvalued, largely driven by the United States, Third Avenue sees overlooked value in many individual companies. Despite a rocky economy, the fund manager believes many quality businesses have become even cheaper, offering compelling opportunities for patient investors. However, the key is to avoid buying a company that seems cheap just because it has temporary advantages that might not last.
Warren Buffett is the king of value investing, and back in 2023, he commented in his annual shareholder meeting that “what gives you opportunities is other people doing dumb things”. Buffett’s Berkshire picks up stocks when others are panic-selling their holdings, and although the Oracle of Omaha understands that the world is rapidly changing, he still sees several value investing opportunities.
Overall, the stock market is in mayhem because of the uncertainty brought on by US trade wars and tariffs. However, institutional investors like Goldman Sachs align with the market perspective and have a thriving $634 billion portfolio. So, let’s take a look at the top Goldman Sachs value stocks.
A happy couple viewing the products of this household and personal product company in a mass merchandiser store.
Our Methodology
To compile our list of Goldman Sachs’ top value stock picks, we searched the investment firm’s Q4 2024 portfolio, starting from the top and assessing the PE ratios as of April 11. From there, we chose the top 12 stocks with PE ratios of 25 or under as Goldman Sachs’ value picks. We have also mentioned the Q4 2024 hedge fund sentiment around the holdings for further insight. The list is ranked in ascending order of Goldman Sachs’ stake value.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
The Procter & Gamble Company (NYSE:PG)
Goldman Sachs’ Q4 2024 Stake Value: $2,830,956,468
P/E Ratio as of April 11: 25.26
Number of Hedge Fund Holders: 79
American multinational consumer goods corporation, The Procter & Gamble Company (NYSE:PG), ranks 5th on our list of the best Goldman Sachs value stocks. On March 26, Evercore ISI maintained an Outperform rating on PG with a $180 price target. According to Evercore, the company remains committed to its investment strategy despite economic pressures and slower market growth. This can potentially expand consumer access and innovation, leading to consistent volume share gains in the United States and important international markets.
On April 8, The Procter & Gamble Company (NYSE:PG) declared a $1.0568 per share quarterly dividend, a 5% increase from its prior dividend of $1.0065. The dividend is distributable on May 15, to shareholders on record as of April 21. The company has paid dividends for 135 years straight and has raised its payouts for 69 consecutive years.
The Procter & Gamble Company (NYSE:PG) reported Q2 FY2025 net sales of $21.9 billion, up 2% from last year, with organic sales rising 3%. Earnings per share came in at $1.88, a 34% year-over-year increase. The company returned $4.9 billion to shareholders through dividends and stock buybacks. PG is sticking to its 2025 guidance, expecting 10-12% EPS growth and 5-7% core EPS growth. However, the company acknowledged some headwinds, including $500 million from higher costs and weaker currency exchange rates. Procter & Gamble plans to return up to $17 billion to shareholders through dividends and share repurchases during fiscal 2025.
Among the hedge funds tracked by Insider Monkey, The Procter & Gamble Company (NYSE:PG) was part of 79 hedge fund portfolios at the end of Q4 2024, compared to 68 funds in the prior quarter. Terry Smith’s Fundsmith LLP was a notable stakeholder of the company, with 4.62 million shares worth $775.6 million.
Overall, PG ranks 5th among the Goldman Sachs Value Stocks: Top 12 Stock Picks. While we acknowledge the potential of value stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
