2 Reasons to Like P&G Stock -- and 1 Reason to Hold Off for Now
It might be time for investors to start loving Procter & Gamble (NYSE: PG) stock again. The consumer staples giant in January announced good news regarding its sales and profits trends, sprinkled in with a few disappointing factors impacting returns.
Shares jumped in response to the quarterly update, yet the stock is still trailing the market over the past 12 months. Let's look at a few reasons why investors might want to take advantage of that discount, and one big reason to hold off for now.
A big concern heading into this report was that P&G might be approaching the limit of its pricing power. Shoppers have been dealing with rising prices for over a year and are increasingly looking for ways to cut spending. Yet P&G did a lot to ease that worry this past quarter. The company was able to pass along its rising raw material costs without a hitch in the fiscal Q2 selling period that ran through late December. In fact, Prices were up 4% overall thanks to big boosts in brands like Tide, Crest, and Bounty.
Source Fool.com
