#4 Worst Dow Stock: Procter & Gamble
Sector: Consumer Staples
Much like McDonald’s, Procter & Gamble (NYSE:PG) has suffered from a general rotation out of some of the more defensive sectors — utilities, consumer staples and the like — after these stocks ran up in 2011. But the story of P&G’s declines also has to do with other factors creating specific headwinds for this company alone.
In its fiscal third quarter, revenue declined slightly. In both Q2 and Q3, earnings per share were down year-over-year. This quarter, many analysts are expecting a slide in one or both of these metrics again when P&G reports earnings July 30.
To be clear, it’s not like Procter & Gamble is at any risk of fading away. It is a dominant consumer products giant with brands that include Bounty paper towels, Duracell batteries and Gillette shaving razors. But while this sleepy stock was in favor last year because of its stability, recent earnings stumbles have prompted some investors to move their money despite the nice 3.8% yield.