We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
P&G (PG) Hits 52-Week High, Starts Exchange Offer with Coty
Read MoreHide Full Article
On Sep 2, shares of The Procter & Gamble Company (PG - Free Report) rallied to a new 52-week high of $88.87. The stock pulled back to end the trading session on Friday at $88.20. This consumer goods giant with a market cap of around $235.44 billion has seen its shares rise roughly 11.1% so far this year as against a 6.6% increase for the S&P 500 over the same period.
Though weak sales have been offsetting margin improvement from pricing gains and cost cuts for some time now, P&G is investing in its brands and products as well as re-designing the supply chain to boost productivity and organic growth.
Under the portfolio strengthening and simplification plans announced in Aug 2014, P&G aims to streamline its business and focus more on prime brands, including Billion Dollar Brands like Tide, Pampers and Oral-B.
Per the strategy, that is nearing its completion, the company has eliminated almost 60% of its brands (roughly 105 brands) that were witnessing decline in sales and profits.
Late last week, P&G initiated an exchange offer for the separation of “P&G Specialty Beauty Brands” as the company proceeds with its proposed tax-efficient Reverse Morris Trust transaction with Coty Inc. COTY, announced on Jul 9, 2015.
Following the closure of the beauty brands merger with Coty this October, P&G will have a portfolio of about 65 consumer and shopper-preferred leading brands focused on 10 categories under four industry-based sectors. Traditionally, these brands have grown faster and have proved more profitable than the others.
Though the divesture of the underperforming brands will hurt near-term sales, it is expected to boost profits over the long haul.
Notably, the company’s organic sales rose 2% in fourth-quarter fiscal 2016 driven by positive volumes for the first time in years.
Zacks Rank & Key Picks
P&G currently has a Zacks Rank #3 (Hold). Better-ranked consumer staples stocks are The Clorox Company (CLX - Free Report) and Colgate-Palmolive Co. (CL - Free Report) . While Clorox sports a Zacks Rank #1 (Strong Buy), Colgate-Palmolive carries a Zacks Rank #2 (Buy).
Confidential: Zacks' Best Investment Ideas
Would you like to see a hand-picked ""all-star"" selection of investment ideas from the man who heads up Zacks' trading and investing services? Steve Reitmeister knows when key trades are about to be triggered and which of our experts has the hottest hand. Click for his selected trades right now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
P&G (PG) Hits 52-Week High, Starts Exchange Offer with Coty
On Sep 2, shares of The Procter & Gamble Company (PG - Free Report) rallied to a new 52-week high of $88.87. The stock pulled back to end the trading session on Friday at $88.20. This consumer goods giant with a market cap of around $235.44 billion has seen its shares rise roughly 11.1% so far this year as against a 6.6% increase for the S&P 500 over the same period.
PROCTER & GAMBL Price
PROCTER & GAMBL Price | PROCTER & GAMBL Quote
What’s Driving P&G?
Though weak sales have been offsetting margin improvement from pricing gains and cost cuts for some time now, P&G is investing in its brands and products as well as re-designing the supply chain to boost productivity and organic growth.
Under the portfolio strengthening and simplification plans announced in Aug 2014, P&G aims to streamline its business and focus more on prime brands, including Billion Dollar Brands like Tide, Pampers and Oral-B.
Per the strategy, that is nearing its completion, the company has eliminated almost 60% of its brands (roughly 105 brands) that were witnessing decline in sales and profits.
Late last week, P&G initiated an exchange offer for the separation of “P&G Specialty Beauty Brands” as the company proceeds with its proposed tax-efficient Reverse Morris Trust transaction with Coty Inc. COTY, announced on Jul 9, 2015.
Following the closure of the beauty brands merger with Coty this October, P&G will have a portfolio of about 65 consumer and shopper-preferred leading brands focused on 10 categories under four industry-based sectors. Traditionally, these brands have grown faster and have proved more profitable than the others.
Though the divesture of the underperforming brands will hurt near-term sales, it is expected to boost profits over the long haul.
Notably, the company’s organic sales rose 2% in fourth-quarter fiscal 2016 driven by positive volumes for the first time in years.
Zacks Rank & Key Picks
P&G currently has a Zacks Rank #3 (Hold). Better-ranked consumer staples stocks are The Clorox Company (CLX - Free Report) and Colgate-Palmolive Co. (CL - Free Report) . While Clorox sports a Zacks Rank #1 (Strong Buy), Colgate-Palmolive carries a Zacks Rank #2 (Buy).
Confidential: Zacks' Best Investment Ideas
Would you like to see a hand-picked ""all-star"" selection of investment ideas from the man who heads up Zacks' trading and investing services? Steve Reitmeister knows when key trades are about to be triggered and which of our experts has the hottest hand. Click for his selected trades right now >>