1. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders as of Q2 2024: 64
The Procter & Gamble Company (NYSE:PG) provides branded consumer packaged goods to consumers across the globe. Its operations are divided into Fabric & Home Care, Grooming, Beauty, Health Care, Feminine & Family Care, and Baby. The company boasts a strong portfolio of brands, which includes reputable names such as Head & Shoulders, Pantene, Safeguard, Tide, Always, Venus, Oral-B, Ariel, Crest, Tampax, and others.
The company is running on solid fundamentals, with fiscal 2024 proving to be another strong year. Its successful execution of integrated strategies allowed the company to meet or exceed its guidance ranges for core EPS growth, organic sales growth, cash return to shareowners, and cash productivity.
Organic sales growth for fiscal 2024 was 4%, making it the company’s sixth consecutive year of 4% of better organic growth. Growth was primarily broad-based across business units, with 8 out of 10 product categories showing organic sales growth. Hair care, grooming, and home care increased high single digits, with oral care and feminine care up mid-singles. Similarly, fabric care, personal healthcare, and family care grew low singles.
Focus markets for the Procter & Gamble Company (NYSE:PG) grew 4% for the year, with North America growing by 5% and Europe focus markets experiencing an 8% growth. The company is working in innovative ways with retailers on the totality of the supply chain end-to-end instead of just trying to optimize its respective pieces.
For instance, it is using data and machine learning algorithms to optimize truck scheduling time and reduce idle time for drivers. It is also employing digital tools to optimize fill rates and improve its dynamic routing and sourcing optimization. These areas have saving opportunities worth $200 million to $300 million, giving the company greater effectiveness and efficiency.
The company is taking targeted steps to reduce overhead while digitizing its operations. Procter & Gamble Company (NYSE:PG) is looking to extend its competitive advantage by adapting and creating new technologies, being willing to change, and developing technologies that will shape the future of the industry.
Overall, PG ranks first among the 8 best cleaning materials stocks to invest in now. While we acknowledge the potential of cleaning materials stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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 the cheapest AI stock.
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