2024-05-28 15:24:28 ET
Summary
- Procter & Gamble's revenue should benefit from easier sales comparisons for the SK-II brand in the Chinese market, inventory destocking ending, and market share gains through increased advertising investments.
- The company's margins have been expanding due to productivity savings, lower commodity costs, and price increases.
- P&G's stock is trading below historical averages and has a good forward dividend yield, making it an attractive investment opportunity.
Investment Thesis
I last covered The Procter & Gamble Company ( PG ) in October 2023 with a buy rating, and the stock has performed well, giving ~10% returns since then. Looking forward, the company's growth prospects look encouraging for the coming year. The company's revenue growth should benefit from easier sales comparisons within the SK-II luxury skincare brand in the Chinese market, which has been a drag on the company's sales over the past few quarters. In addition, revenue should also benefit from volume growth thanks to abating headwinds from retail inventory destocking, and market share gains through an increase in advertising investments....
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For further details see:
Procter & Gamble: Good Near-Term And Long-Term Growth Prospects