Why Procter & Gamble Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, consumer products gorilla Procter & Gamble has earned a respected four-star ranking.

With that in mind, let's take a closer look at Procter & Gamble and see what CAPS investors are saying about the stock right now.

Procter & Gamble facts

Headquarters (Founded)

Cincinnati (1837)

Market Cap

$187.3 billion

Industry

Household products

Trailing-12-Month Revenue

$83.0 billion

Management

Chairman/CEO Robert McDonald
CFO Jon Moeller

Return on Equity (Average, Past 3 Years)

16.3%

Cash/Debt

$5.3 billion / $31.9 billion

Dividend Yield

3.3%

Competitors

Johnson & Johnson
Kimberly-Clark


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 7,664 members who have rated Procter & Gamble believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, InvestorDeb, succinctly summed up the Procter & Gamble bull case for our community:

The company is ahead of plan on its restructuring program (its goal is to see $10 billion in savings by 2016). Industry consolidation will result in fewer competitors, and that should lead to a more favorable price/mix. Lower commodity costs and a weaker dollar should help increase margins. Worth 1/3 of a position here, with more money being added if we get a strong sell-off in February/March on debt ceiling woes.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Procter & Gamble may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.


Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Procter & Gamble Is Poised to Outperform originally appeared on Fool.com.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson, Kimberly-Clark, and Procter & Gamble and owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement