Zacks Industry Outlook Highlights Procter & Gamble, Colgate-Palmolive, Church & Dwight and Grocery Outlet

For Immediate ReleaseChicago, IL – July 15, 2025 – Today, Zacks Equity Research discusses The Procter & Gamble Co. PG, Colgate-Palmolive CL, Church & Dwight Co., Inc. CHD and Grocery Outlet Holding Corp. GO.Industry: Consumer StaplesLink: https://www.zacks.com/commentary/2579397/4-resilient-consumer-product-stocks-to-watch-amid-market-challengesCompanies within the Zacks Consumer Products – Staples industry are navigating a challenging consumer landscape. Elevated living costs are straining household budgets, leading to cautious spending patterns and pressuring industry-wide sales. At the same time, many consumer goods companies face elevated raw material costs and higher selling, general, and administrative (SG&A) expenses.However, demand for essential consumer products remains strong. Industry leaders like The Procter & Gamble Co., Colgate-Palmolive, Church & Dwight Co., Inc. and Grocery Outlet Holding Corp. are leveraging strategies centered on innovation, cost efficiency, and digital transformation to sustain growth and maintain market momentum.About the IndustryThe Zacks Consumer Products – Staples industry consists of companies involved in marketing, producing and distributing a wide range of consumer products. These include personal care items, cleaning equipment, stationery, bed and bath products and household goods like kitchen appliances, cutlery and food storage. Some industry participants also provide batteries and lighting products, whereas some offer pet food and treats, pet supplies, pet medications and pet services.Companies in the Consumer Products – Staples universe offer products to supermarkets, drug/grocery stores, department stores, warehouse clubs, mass merchandisers and other retail outlets. Some companies sell products to manufacturers of perfumes and cosmetics, hair and other personal care products. Products are also sold through other distributors and the fast-growing e-commerce channel.Trends Shaping the Future of the Consumer Products - Staples IndustryEncountering Higher Costs in a Challenging Landscape: The consumer goods industry is under pressure from rising costs in raw materials, labor, and transportation. These elevated input costs weigh on profit margins, especially when companies are unable to fully offset them through price increases. Compounding the challenge are higher SG&A expenses, along with increased investments in digital transformation and marketing to drive growth.Many firms are vulnerable to shipping disruptions, which can result in delays and higher freight expenses, squeezing overall profit margins. To safeguard margins, many companies are implementing restructuring initiatives and cost-cutting strategies aimed at improving operational efficiency and sustaining profitability in this demanding environment.Consumer Spending Volatility: The Consumer Products – Staples industry is grappling with increased spending volatility amid an uncertain macroeconomic backdrop. Shifting consumer behavior, especially among lower-income households, is being driven by rising living expenses and declining personal savings.These financial pressures are dampening purchasing power and directly impacting sales across the industry. Given the sector's heavy reliance on middle and lower-income consumers, it remains especially vulnerable to economic headwinds that could result in softer demand, lower sales volumes and slower growth momentum.Maximizing Revenues Through Strategic Optimization: Players in the consumer products space have been refining their operations to optimize revenue generation, which includes a strong focus on enhancing e-commerce and digital initiatives. They are also innovating to cater to evolving consumer demands, such as prioritizing healthier food options, incorporating eco-friendly packaging and leveraging technology to enhance convenience. These efforts not only fuel growth but also help maintain competitiveness in an ever-changing market. Many industry players are reshaping their portfolios by pursuing strategic acquisitions and divestitures, enabling a sharper focus on high-growth areas.Zacks Industry Rank Indicates Dull ProspectsThe Zacks Consumer Products – Staples industry is housed within the broader Zacks Consumer Staples sector. It currently carries a Zacks Industry Rank #144, which places it in the bottom 41% of more than 246 Zacks industries.The group's Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates dim near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.The industry's position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually becoming less confident about this group's earnings growth potential. Since the beginning of April 2025, the consensus estimate for the industry's current financial year earnings has decreased 2.7%.Let's look at the industry's performance and current valuation.Industry vs. Broader MarketThe Zacks Consumer Products – Staples industry has lagged the S&P 500 Index and the broader Zacks Consumer Staples sector over the past six months.The industry has gained 1.5% over this period compared with the S&P 500 Index's growth of 5.3%. Meanwhile, the broader sector has advanced 10.5%.Industry's Current ValuationOn the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing consumer staple stocks, the industry is currently trading at 20.13X compared with the S&P 500's 22.63X and the sector's 17.32X.Over the past five years, the industry has traded as high as 23.56X, as low as 18.96X and at the median of 21.21X.4 Consumer Product Stocks to Keep a Close Eye OnColgate: This Zacks Rank #2 (Buy) company is a global leader in the oral care market. It continues to benefit from effective pricing strategies and productivity initiatives, such as its Funding the Growth program. The company is actively investing in both core and premium product innovations, while increasing advertising spend to boost brand visibility and household penetration.Colgate is expanding its digital, data and analytics capabilities, strengthening its competitive edge and supporting long-term profitability in a dynamic consumer environment. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Colgate's current fiscal-year earnings per share (EPS) has increased from $3.65 to $3.66 in the past seven days, indicating growth of 1.7% from the year-ago period's level. Shares of the company have gained 3.1% in the past six months.Grocery Outlet: This Zacks Rank #2 company is strengthening its market position through a balanced growth strategy. This includes a diverse product assortment, targeted marketing, in-store enhancements, and expanded e-commerce capabilities. The company's same-day delivery services underscore its focus on customer convenience and digital engagement.Moreover, Grocery Outlet is accelerating the expansion of its private-label offerings to drive value and differentiation. With a disciplined, return-focused approach to expansion, the company is optimizing store growth to prioritize Return on Invested Capital. Grocery Outlet remains committed to returning to its long-term growth trajectory in fiscal 2025.The Zacks Consensus Estimate for Grocery Outlet's current fiscal-year EPS has remained unchanged at 74 cents in the past 30 days. The projection indicates a decline of 3.9% from the year-ago period's figure. GO's shares have declined 16.8% in the past six months.Procter & Gamble: The Zacks Rank #3 (Hold) serves consumers worldwide with one of the strongest portfolios of trusted, high-quality brands. The company's products are essential to daily health, hygiene, and cleaning routines across the globe. P&G's strategy emphasizes sustainability and adaptability, continuously responding to evolving consumer needs, retail dynamics and societal expectations.By driving market growth and creating new opportunities, P&G is charting a path toward sustainable, long-term profitability. Its focus on daily-use categories, where superior product performance drives brand preference, has led to consistent growth across multiple product lines and geographies.The Zacks Consensus Estimate for Procter & Gamble's current fiscal-year earnings per share (EPS) has remained unchanged at $6.78 in the past 30 days. This suggests growth of 2.9% from the year-ago period. PG shares have declined 0.4% in the past six months.Church & Dwight: Church & Dwight, the leading U.S. producer of sodium bicarbonate, popularly known as baking soda, is focused on strengthening its business through innovation, portfolio optimization and digital expansion. The company carries a Zacks Rank #3 at present, reflecting a balanced outlook amid ongoing strategic initiatives.Church & Dwight continues to enhance its product offerings with new launches across household and personal care categories, supporting brand leadership and consumer relevance. By streamlining operations and focusing on core, higher-margin brands, the company is positioning itself for sustained growth. Expanding e-commerce capabilities and international presence further support its long-term value creation strategy.The Zacks Consensus Estimate for Church & Dwight's current fiscal-year EPS has remained unchanged at $3.48 in the past 30 days. The projection indicates growth of 1.2% from the year-ago period's figure. CHD's shares have declined 4.6% in the past six months.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpJoin us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Procter & Gamble Company (The) (PG): Free Stock Analysis Report Colgate-Palmolive Company (CL): Free Stock Analysis Report Church & Dwight Co., Inc. (CHD): Free Stock Analysis Report Grocery Outlet Holding Corp. (GO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks