The Procter & Gamble Company (NYSE:PG) is expected to report last fiscal quarter's results before the opening bell on January 27, 2012. Let's review how The Procter & Gamble Company has performed in recent quarters. The Procter & Gamble Company provides consumer packaged goods in the United States and internationally. The company was founded in 1837 and is based in Cincinnati, Ohio.
52 Week High: $67.72
52 Week Low: $57.56
Book Value: $23.71
Float Short: 0.95%
Analysts are expecting an improvement of $0.05 in earnings per share compared to last quarter's results of $1.03. Wall Street is expecting $1.08 per share, based on earnings estimates. Analyst estimates range between $1.03 and $1.11 per share.
The current trailing twelve months P/E ratio is 16.4. The forward P/E ratio is 15.45. Looking at the price movement over the last month, the stock has fallen in price -2.50%, with a change from a year ago of -1.38%. When comparing to the S&P 500, the year to date difference is -6.88%.
Procter & Gamble recently retraced and tested the 200 day moving average this week. Watching a stock fall in front of earnings is generally not a great sign, but in light of the time tested revenue growth this money printing machine has demonstrated, I would consider pullbacks to be buying oppertunities. A break below $64 would give me pause to reevaluate, but as long as the technicals stay strong and an investor can get paid a 3% yield for waiting it out, I see no grave danager.
While not "dirt cheap" by my standards, the price to earnings mulitple is not expensive either. Some analysts have recently cut expectations due to questions regarding Procter & Gamble's ability to maintain market share in light of price hikes, but this appears to be largely priced in with the recent drop in price.
Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $82.56 billion for 2011 vs. $78.94 billion for 2010. The bottom line has falling earnings year-over-year of $11.80 billion for 2011 vs. $12.74 billion for 2010. The company's earnings before interest and taxes are falling, with an EBIT year-over-year of $15.82 billion for 2011 vs. $16.02 billion for 2010.
Newell Rubbermaid Inc. (NYSE:NWL) is due to report earnings before the opening bell on January 27, 2012. Below we can see the results of Newell Rubbermaid over the last few earnings periods. Newell Rubbermaid Inc., together with its subsidiaries, designs, manufactures, packages, and distributes consumer and commercial products. The company was founded in 1903 and is based in Atlanta, Georgia.
52 Week High: $20.38
52 Week Low: $10.87
Book Value: $6.55
Float Short: 1.60%
On average, 12 analysts are expecting a drop of $-0.07 in earnings per share compared to last quarter's results of $0.45. Wall Street is expecting $0.38 per share, based on earnings estimates. Analyst estimates range between $0.36 and $0.40 per share.
The current trailing twelve months P/E ratio is 11.1. The forward P/E ratio is 10.21.
From a month ago, the stock has increased in price 6.90%, with a change from a year ago of -2.88%.
With a modest gain compared to stocks in general, the stock is close to the same as the overall stock market. When comparing to the S&P 500, the year up to date change is 1.72%.
Newell Rubbermaid and Procter & Gamble are competitors in the consumer discretionary sector and of the two, Rubbermaid's chart appears to be stronger. With a lower PE multiple, but also a lower dividend yield of 1.9%, it's somewhat like comparing apples to oranges. Both companies, like fruit and vegetables, are likely to be healthy for your long-term holding portfolio. I would view pullbacks as a buying opportunity to get long the stock by selling put options to also gain option premium.
For the same fiscal period year-over-year, revenue has improved to $5.76 billion for 2010 vs. $5.58 billion for 2009. The bottom line has rising earnings year-over-year of $292.80 million for 2010 vs. $285.50 million for 2009.The company's earnings before interest and taxes are rising, with an EBIT year-over-year of $629.90 million for 2010 vs. $574.90 million for 2009. Rising revenue along with rising earnings is a very good sign, and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.
I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.