Jim Cramer on Procter & Gamble (PG): “They Don’t Have the Growth That I Want”

Jim Cramer on Procter & Gamble (PG): “They Don’t Have the Growth That I Want”

Syeda Seirut Javed

Tue, September 15, 2026 at 11:16 PM GMT+3 2 min read

• PG +0.24%

Answering a caller's query about The Procter & Gamble Company (NYSE:PG) during the lightning round of the September 10 episode of Mad Money, Jim Cramer said:

It's a tough stock. It's a tough stock because they don't have the growth that I want. They do have the 3% yield, but that's not enough. So, I'm going to say, you know, we sold it for the club. Don't look back.

Premiumization, Margin Expansion, and Massive Cash Returns

The Procter & Gamble Company's (NYSE:PG) upside relies on elite operational execution and pricing power in high-margin categories. Continuous supply chain savings and an aggressive premiumization push toward items like Tide PODS help protect profitability. Combined with strong free cash flow productivity, management returned roughly $15 billion in FY 2026 through dividends and share buybacks, ensuring a steady earnings floor despite slow top-line growth.

Volume Exhaustion, Pricing Plateaus, and Capital Opportunity Costs

The primary headwind is weak top-line momentum, with organic sales flat in the second quarter as challenging consumer trends, particularly in the U.S., weighed on growth. Foreign exchange friction and cost pressures further cap near-term earnings acceleration. Additionally, while the stock offers a reliable 3% dividend yield, that income profile creates a steep opportunity cost when risk-free assets and higher-growth stocks offer attractive returns. We recently discussed what Cramer thinks is the ideal valuation for a good entry point in our article, "Jim Cramer Discusses Procter & Gamble (PG) Valuation and Growth."

Institutional Ownership and Short Interest

According to Insider Monkey's data, 83 hedge funds had a stake in The Procter & Gamble Company (NYSE:PG) in Q2 compared to 78 in the prior quarter. Short percentage of the float is 1.21%, showing its status as a defensive holding rather than a short target. While the company provides exceptional balance sheet stability and reliable cash returns for defensive portfolios, its modest top-line growth trajectory and premium valuation continue to test investor patience, validating Cramer's decision to reallocate capital toward faster-moving opportunities.

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