Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis.
Stock number one is:
Proctor & Gamble Co., (SYMBOL: PG) and the headline says:
P&G Reorganizes Into Four Industry Groups Under New CEO -- Bloomberg
Proctor & Gamble Company, “will streamline its businesses into four industry-based groups as recently returned [CEO] A.G. Lafley works to reignite growth,” reports Bloomberg. Lafley remarked, “these organization changes will help us operate better and faster.”
Competitors have been stealing P&G market share, with Unilever’s sales growth outpacing P&G’s four-fold in the past three years. A $10 billion cost-cutting plan remains in effect through 2016.
On May 24, we told investors to stay on the sidelines due to the high PE, slow earnings growth, and neutral chart. The stock’s still trading between $76 and $83.
Our Ransom Note trendline says: STAY ON THE SIDELINES.
Stock number two is:
The J.M. Smucker Co., (SYMBOL: SJM) and the headline says:
Smucker Fourth Quarter Earnings Exceed, Revenues Lag -- Zacks
J.M. Smucker Company reported fourth quarter earnings of $1.29 per share, above the consensus estimate of $1.15, led by strong coffee volume and profit growth. Revenues were down 1% year-over-year.
Earnings are projected to grow 9-11% for each of the next three years. The dividend yield is 2.11%; and the PE is 19, in a normal range of 12 to 21.
Smucker stock rose steadily since last August, peaked in May, and is now establishing a new trading range between 98 and 105. Shares appear fully valued at this time.