We recently published an article about the 8 Best Cleaning Materials Stocks To Invest In Now. Let’s look at where The Procter & Gamble Company (PG) 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).
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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, Procter & Gamble Company (NYSE:PG) ranks 1st among the 8 best cleaning materials stocks to buy now. While we acknowledge the potential of PG as an investment, our conviction lies in the belief that some 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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Disclosure: None. This article is originally published at Insider Monkey.
