We recently published an article about the 8 Best Cleaning Materials Stocks To Invest In Now. Let’s look at where WD-40 Company (WDFC) stands against other cleaning materials stocks to invest in now.
Investors are reacting to an array of geopolitical and economic developments as volatility in the US equity market edges higher heading into year-end. The upcoming US election is posing a significant headwind that is taking a toll on sentiments in the equity markets. Similarly, concerns of a slowing economy crumbling amid high interest rates is also leading investors to rethink their investment portfolios.
Will the Soft Landing Narrative Play Out the Way Investors Want?
On October 16, Saira Malik, Nuveen CIO and head of equities and fixed income, joined CNBC’s ‘Squawk Box’ to discuss the latest market trends, whether the soft landing narrative will play out, and the state of the economy, among others. She said that concerns exist over whether the soft landing narrative will play out the way investors want or not.
Investors are drinking the Kool Aid when it comes to a soft landing, and that can be seen in the earnings seasons so far where companies are coming in reasonably strong, especially in the non-tech side. The consumer also looks strong. But the bar is pretty low for this earnings season, with a 4% year over year earnings growth expected as compared to last quarter’s 11%. Thus, Malik is of the view that the narrative might not play out exactly the way it was anticipated.
How to Hedge Your Portfolio Amid Market Volatility
On August 8, Tiffany McGhee, CEO and CIO of Pivotal Advisors, appeared on CNBC to discuss the market’s volatility and ways to hedge your portfolio. She expressed her inclination towards holding a diversified portfolio and an asset allocation strategy set. She said that it is really exciting getting caught up in the large-cap growth stocks that really drive the performance of the market for so long. But it is really important to have a balance portfolio, and thus she reiterated that investors should really consider having defensive stocks if they don’t have any.
Defensive stocks have long been a popular addition to portfolios, as they hold the potential to protect investors from the transitions of the stock market. They can produce good income, stable returns, and pose long-term value for investors.
Our Methodology
To ranks the 8 best cleaning materials stocks to invest in now, we used the Finviz screener, ETFs, and online rankings to first identify the top cleaning material stocks. We then selected 8 stocks that were also the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of their hedge fund holders as of Q2 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Overall, Procter & Gamble Company (NYSE:PG) ranks 1st among the 8 best cleaning materials stocks to buy now.
WD-40 Company (NASDAQ:WDFC)
Number of Hedge Fund Holders as of Q2 2024: 22
WD-40 Company (NASDAQ:WDFC) owns various brands that develop maintenance, cleaning, and home care products. It develops and sells products that solve problems in homes, workshops, and factories across the globe, including Solvol, WD-40 Multi-Use Product, no vac, 3-IN-ONE, WD-40 Specialist, GT85, 2000 Flushes, and Carpet Fresh.
The company’s maintenance products include multi-purpose maintenance and specialty maintenance items. WD-40 Company (NASDAQ:WDFC) has operations in more than 176 countries worldwide. Its Q3 2024 results mark the third consecutive quarter of sales growth across all three of its trade blocks.
Its net sales reached $155 million, an increase of more than 9%, making Q3 a record quarter for the company. In addition, sales of maintenance products increased more than 10% for both year-to-date and Q3, aligning with the company’s long-term growth targets.
The positive trends seen in the first half of 2024 continued in Q3, with sales volumes continuing to improve. Most of the company’s sales growth in Q3 was driven by volume. Sales in the Americas (including the US, Canada, and Latin America) grew by around 6% over the past year, reaching $75.1 million. A majority of this growth was driven by increased sales of the WD-40 Multi-Use Products, which grew 7% compared to the previous year. Most of this strong sales growth came from Latin America, which underwent an increase of 51% year-over-year. Sales in Latin America were positively impacted by the company’s transition to a direct market model in Brazil.
WD-40 Company (NASDAQ:WDFC) is regularly focused on employing targeted sampling programs to build brand awareness. It is growing its distribution network as a simple yet effective strategy that works for the company.
Overall, WD-40 Company (NASDAQ:WDFC) ranks 7th among the 8 best cleaning materials stocks to buy now. While we acknowledge the potential of WDFC to grow, 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 WDFC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
