153.48 0.00 (0.00%)
After hours: 4:59PM EDT
|Bid||153.48 x 800|
|Ask||156.35 x 1000|
|Day's Range||152.78 - 154.35|
|52 Week Range||113.57 - 167.70|
|Beta (3Y Monthly)||0.47|
|PE Ratio (TTM)||25.37|
|Earnings Date||May 1, 2019|
|Forward Dividend & Yield||3.84 (2.39%)|
|1y Target Est||153.00|
Kraft Heinz (NYSE:KHC) CEO Bernardo Hees, who gained notoriety on Wall Street as a cost-cutter, will now have to figure out how to invest money into the beleaguered packaged food company if its long-suffering shareholders ever hope to get any relief.Source: Mike Mozart via FlickrUnfortunately, Hees won't be able to just write a check to make KHC's problems go away. Like other packaged food companies, KHC has been hurt by the rising consumer demand for "fresh and healthy" ingredients at the expense of processed food. New York-based KHC made matters worse by making unrealistic forecasts for the savings of its 2015 merger, which loaded its balance sheet with more than $31 billion in debt. Plunging Share PriceKHC stock has plunged more than 64% since Unilever (NYSE:UL) rejected the company's unsolicited $143 billion offer. The stock was further bloodied by its recent announcement of disappointing earnings, a $15 billion write-down, a dividend cut and an SEC investigation into its accounting practices. S&P recently announced that it was reviewing KHC's debt for a possible downgrade after the company missed the deadline to file its annual report (form 10-K) with the Securities & Exchange Commission. InvestorPlace - Stock Market News, Stock Advice & Trading TipsDuring the company's earnings conference call, Hees tried to reassure investors that he was willing to deploy capital where it's needed. Hees is also is a partner with 3G Capital, the Brazilian private equity that owned Heinz and arranged with Warren Buffett for the merger with Kraft. * 6 Cheap Stocks That Cost Less Than $10 "In a nutshell, we plan to go to market in 2019 with a stronger innovation pipeline than we ever had, backed by more marketing dollars while leveraging advantaged category managed and go-to-market initiatives to win assortment and improve distribution across all channels, including e-commerce," He said. "And we plan to do this while we maintain industry-leading margins."Easier said than done since KHC clearly fired too many workers and damaged its brands, damage which won't be easy or cheap to fix.The company is trying to clean up the mess Hees helped create. According to media reports, Kraft Heinz is reviewing strategic options for its Maxwell House Coffee business including a possible sale and may dispose of other well-known brands such as Breakstone's Cottage Cheese and sour cream. Selling off poorly performing businesses is a step in the right direction though it isn't a substitute for a business strategy. The Oracle of OmahaIndeed, the growth through acquisitions approach isn't the answer for KHC. According to CNBC, the company passed on bidding for Pinnacle Foods and failed to make a compelling offer for Campbell Soup when it was being shopped around last year. KHC stock deserves to be in Wall Street's penalty box but it's not going to be in their forever. The company has a major fan in Buffett, who recently described the company as a "fabulous" business though he admitted that Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) "overpaid" for Kraft. He has no plans to liquidate his position.For investors with a large tolerance for risk, KHC is worth testing Buffett's maxim to "be fearful when others are greedy and to be greedy only when others are fearful." However, there are better places for investors to put their money in the consumer sector, including Campbell, Chuch & Dwight (NYSE:CHL) and Clorox (NYSE:CLX).As of this writing, Jonathan Berr did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post Now Is the Right Time to Buy Kraft Heinz Stock appeared first on InvestorPlace.
Procter & Gamble (NYSE:PG) will announce its earnings next Tuesday before the opening bell. Despite the venerable personal-care products maker's reputation as a defensive dividend payer, PG stock has rallied massively over the last year.Source: Mike Mozart via Flickr (Modified)Unfortunately, the rally may have left new investors with less incentive to buy PG stock. With the multiples of PG stock having risen to multi-year highs and its profit growth remaining moderate at best, investors should probably think twice about buying Procter and Gamble at these levels. * 5 Dividend Stocks Perfect for Retirees Expect Slight Earnings, Revenue IncreasesFor PG's fiscal third quarter, analysts' consensus earnings per share estimate is $1.03. That's 3% higher than Q3 of 2018 when the company earned $1 per share of PG stock. Analysts on average predict revenues of $16.32 billion, a slight gain from the $16.28 billion the company generated during last year's Q3.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn the surface, PG appears to be performing well. Trading near its all-time highs, PG stock is 50% above its levels of one year ago. That seems unusual for a stock that traders tend to buy for its dividend.After the company raised the dividend of PG stock this year, the payout has risen for 63 straight years, the fourth-longest streak on Wall Street. PG has paid a dividend every year since 1890. Currently at $2.87 per share, the payout yields 2.75%. Will Investors Continue to Buy PG Stock After the Surge?The impressive rally of PG stock has made it less appealing. The dividend yield of PG stock was about 3.5% this time last year, versus 2.75% now. Moreover, PG's price-earnings (PE) ratio has risen to 25.74. In fairness, Procter & Gamble's peers such as Colgate-Palmolive (NYSE:CL), Kimberly Clark (NYSE:KMB), and Clorox (NYSE:CLX) trade at comparable or higher multiples.Still, the current PE ratio of PG is above its average PE over the last five years of 23.5. It's also well above the mid-teen multiples Procter & Gamble was awarded in the early part of the decade. Also, Wall Street expects PG to report solid, but unimpressive, profit increases. On average, analysts forecast 5.2% profit growth for this fiscal year and 7% next year. Those increases appear too low to justify the current PE ratio of PG stock.Furthermore, even after spinning off numerous brands in the middle part of the decade, PG stock remains vulnerable. For all of its accolades, the competitive moat of Procter and Gamble begins and ends with brand recognition and store-shelf space. Consumers know and love PG's brands such as Tide laundry detergent and Bounty paper towels. However, thanks to e-commerce, consumers can more easily find comparable products at lower prices.I do not think the increased competition will wipe out PG stock. I also do not believe that the rising dividend of PG stock will be threatened. Still, the company may have difficulty growing its revenue, making PG's current valuation difficult to justify. Going into earnings, few investors have an incentive to buy Procter and Gamble at these levels. Final Thoughts on PG StockGiven the recent increases in its price, PG stock will probably struggle to move higher in the near-term. As a result, I see no reason to buy PG 's shares ahead of its earnings.Procter and Gamble enjoyed an unexpected but impressive run over the last year. However, consumer defensive stocks better known for paying dividends rarely have such rallies. Despite increasing competition and analysts' belief that the company's revenue growth was anemic last quarter, I think the stock's dividend will continue to rise. However, other stocks feature annual dividend hikes and lower valuations.For now, income-oriented investors will probably find higher overall returns elsewhere.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post Going Into Earnings, Will Procter & Gamble Stock Move Higher? appeared first on InvestorPlace.
What to Expect from Procter & Gamble’s Q3 2019 Results(Continued from Prior Part)Consensus target price indicates downsideThe majority of analysts continue to suggest “holds” on Procter & Gamble (PG) stock. The company has impressed
What to Expect from Procter & Gamble’s Q3 2019 Results(Continued from Prior Part)Positive surprise history Procter & Gamble (PG) has a long history of exceeding analysts’ EPS estimates. The company has surpassed Wall Street’s EPS
What to Expect from Procter & Gamble’s Q3 2019 ResultsPG is expected to sustain momentum Procter & Gamble (PG) is scheduled to announce its earnings results for the third quarter of fiscal 2019 before the market opens on April 23.
Why Analysts Have a Bleak Outlook for Kimberly-Clark’s Q1(Continued from Prior Part)Unattractive valuation Kimberly-Clark (KMB) stock has increased 8.1% so far this year and trades at a forward PE multiple of 18.7x, which seems unappealing, as
Why Analysts Have a Bleak Outlook for Kimberly-Clark’s Q1(Continued from Prior Part)Earnings to remain pressured We expect Kimberly-Clark’s (KMB) bottom line to register a YoY decline in the first quarter of 2019. Adverse currency rates, lower
Why Analysts Have a Bleak Outlook for Kimberly-Clark’s Q1(Continued from Prior Part)Factors to drag sales down Kimberly-Clark (KMB) has exceeded analysts’ sales estimate in the past two consecutive quarters thanks to the improvement in pricing.
Why Analysts Have a Bleak Outlook for Kimberly-Clark’s Q1Kimberly-Clark likely to disappoint investors in Q1Kimberly-Clark (KMB) is expected to announce its first-quarter results before the markets open on Monday, April 22. Analysts predict that
The consumer staples sector, long a haven for defensive investors in times of economic uncertainty or market downturns, has had a difficult year. Year to date, the sector has risen 9.5%, still well below the 15.4% rise of the S&P 500. Within the past year, there have been skeptics who contend that, due to disappointing earnings, the sector can no longer reliably be considered "defensive." Investors are now more discriminating and no longer view the sector as a whole, but divided between those companies that are struggling, due to profound changes in consumers behavior and diminished loyalty to brand names, and those companies that are adjusting to the new realities of a sector in flux.
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J.P. Morgan's top analyst could be right to downgrade General Electric in the short term, but CEO Larry Culp has a long-term strategy that has potential, the "Mad Money" host says. "I am a big Boeing supporter, but this downgrade has gravitas and with the stock still up 16% year-to-date, I think ringing the register here does make sense," he says. Investors should take note of the downgrades analysts made on a collection of stocks, CNBC's Jim Cramer said Monday.
Shares of Clorox Co. slumped 1.2% in afternoon trade, enough to lead the consumer staples sectors losers, after J.P. Morgan turned bearish on the consumer products company citing concerns that sales trend are worsening. Analyst Andrea Teixeira cut her rating to underweight, after being at neutral the past two years, and slashed her price target to $139 from $159. Recent Nielsen sell-through data suggested a softening in sales growth for Clorox, which brands include Glad, Kingsford and Burt's Bees. Teixeira said she believes the softening could be a "multi-quarter issue" for the company given weakness in the bags and wrap category, which suffered double-digit percentage declines in tracked channel distribution, and in the company's charcoal business. Teixeira said distribution losses in charcoal are particularly troubling, as Clorox is entering peak grilling season. Clorox's stock has slipped 0.3% year to date, while the SPDR Consumer Staples Select Sector ETF has climbed 9.8% and the S&P 500 has rallied 15%.4%. Separately, E.L.F. Beauty Inc. stock tacked on 0.5% after Teixeira upgraded the cosmetics company to neutral from underweight citing expectations of stabilizing sales trends.
Why Wells Fargo Upgraded Procter & Gamble Stock(Continued from Prior Part)Valuation and decline in EPS a concern Procter & Gamble (PG) stock could benefit from the recent upgrade from Wells Fargo. Meanwhile, momentum in the base business
was raised to outperform from market perform by Wells Fargo Securities analyst Bonnie Herzog and the price target was lifted to $115 from $91, imply an 11% gain form the stock's close on Friday. Herzog said she sees upside and is a fan of management, led by CEO David Taylor. P&G recently was touted for gaining more access to the cloud for analyzing manufacturing data via General Electric's Predix MDC.
Why Wells Fargo Upgraded Procter & Gamble StockPG upgraded to “outperform”On April 8, Procter & Gamble (PG) stock was up about 1% in the pre-market session after Wells Fargo upgraded the stock. Wells Fargo upgraded its rating on Procter
J.P. Morgan downgraded General Electric to underweight from market weight Bank of America downgraded Boeing to neutral from buy UBS downgraded Starbucks to neutral from buy Wells Fargo upgraded Procter ...
Clorox (CLX) gains from smooth progress on 2020 Strategy, focus on e-commerce and brand-management initiatives. It also has a robust earnings surprise history.
The stock market's robust 14.7% gain thus far in 2019, as measured by the S&P 500 Index (SPX) at today's open, has lifted a large number of stocks, and many investors forecast more gains as the economy strengthens. Goldman Sachs says, "real GDP growth will rebound to 3.0% in 2Q from the 0.7% pace in 1Q that encompasses the 34-day federal government shutdown," according to the firm's latest US Weekly Kickstart report. Goldman's latest US Quarterly Chartbook report identifies 40 stocks that their analysts expect to fall significantly, with these six topping the list with declines of nearly 20% or more: Juniper Networks Inc. (JNPR), Church & Dwight Co. Inc. (CHD), Clorox Co. (CLX), Realty Income Corp. (O), Ventas Inc. (VTR), and The Hershey Co. (HSY).
OAKLAND, Calif. , April 3, 2019 /PRNewswire/ -- The Clorox Company (NYSE: CLX) announced today that it will host a live audio webcast of a discussion with the investment community about its third-quarter ...
Limited Edition Scoop Away® Box Features Lil BUB on Millions of Packages to Raise Awareness for Animal Welfare OAKLAND, Calif. , April 2, 2019 /PRNewswire/ -- Scoop Away®, the clumping cat litter known ...
Hedge funds and other investment firms run by legendary investors like Israel Englander, Jeffrey Talpins and Ray Dalio are entrusted to manage billions of dollars of accredited investors' money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to […]
Church & Dwight to Announces Acquisition, Stock Rises ~4%(Continued from Prior Part)Sales and earnings Church & Dwight (CHD) is expected to outperform its peers with its sales and earnings growth rate. Church & Dwight’s organic sales