Like the resurgent U.S. economy, the consumer-products giant appears to be on the rebound, making gradual strides in improving business and increasing hopes for a turnaround in sales. But not quite yet. Sales in the quarter ending Sept. 30 continued to shrink, with P&G recording mid-single-digit declines in all of its product groups, except Grooming, which fell 11%.

Still, total sales came in slightly ahead of Wall Street expectations and the company raised its forecast for full-year sales. "Our focus this fiscal year is profitable share growth, and I underline profitable share growth," said CEO Bob McDonald during a conference call with investors. McDonald assumed the chief executive's post in July.

"It looks like with new leadership that the company is getting things turned around a little quicker than what we expected," Edward Jones analyst Jack Russo told Reuters. "What this stock really needed was improvement on the sales front and we're starting to see that now."

Investors reacted positively to the news, driving P&G shares up 4% to $59.54 a share Thursday, as markets were set to close. The stock's rise was in step with a Wall Street-wide rally, which saw the Dow Jones industrial average ($INDU), of which P&G is a component, rise 2.1% to 9,962.58.

P&G offers a bevy of well-known name household brands, including Tide detergent, Pampers diapers, Olay beauty products and more. But those products often sell at premiums to bargain and store brands. Amid the tight economy, many consumers have been unwilling to pay more for P&G products.

In reaction, P&G said in September it was cutting prices on about 10% of its global product lines. Given the current state of consumer spending, which emphasizes price and value, it is a decision the company had to make, said an analyst at the time.

Bolstering hope for brighter days at P&G were quarterly results from smaller rival Colgate-Palmolive Co. (NYSE: CL), which also reported higher-than-anticipated earnings. Colgate reported a profit of $590 million, or $1.12 a share, up from $500 million, or 94 cents a share, a year earlier. Prior-year results included 5 cents a share in restructuring charges.

Of concern to both companies are a number of factors that could affect future profitability, including raw material costs and the nation's near-10% unemployment rate. With those in mind, certainty about a turnaround in sales for consumer products remains questionable and so may investor enthusiasm in P&G and other consumer stocks.