| | | Re: Young Folk Portfolio ... Add on Buys
Today I added to PG and MA.
I added to PG based on their strong performance as they announced a beat and raise while guiding higher and suggesting organic growth was strong.
Procter & Gamble CEO: Strong demand, pricing power drove results
Jan. 19, 2022 9:39 AM ET
The Procter & Gamble Company (PG) By: Brian Stewart, SA News Editor
 Joe Raedle/Getty Images News
Procter & Gamble CEO Jon Moeller said Wednesday that the consumer product maker's better-than-expected quarterly results came about because of strong demand and pricing power.
"Demand has continued to be strong," the head of Procter & Gamble (NYSE: PG) told CNBC.Moeller's comments followed the release of P&G's ( PG) latest quarterly results, which showed a non-GAAP EPS figure that topped expectations by a penny. Revenue rose 6% to $20.95B -- beating expectations by over $600M.
The company also raised its organic sales growth figures, saying it now expects an increase of 4%-5% for the full year. Previously, the firm had projected growth in the 2% to 4% range.
In discussing the upbeat sales projection, Moeller highlighted the fact that half of its increase in organic sales came from higher prices, while the other half was driven by increased unit volume, a signal of strong demand.
He also noted that the firm's ability to raise prices didn't just reflect the current inflationary environment. Rather, the firm had extra pricing power from its commitment to innovation.
"When you have a business model that's founded on innovation, that provides higher levels of delight, that solves problems better for consumers, you're able to charge a little bit more," he said.
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With MA I simply went with the analysts consensus view that it is a Buy.
Jefferson Research -- Buy
Argus -- Buy
The Street -- Buy
CFRA -- Buy
Credit-Suisse -- Outperform
Reuters -- Outperform
Tip Ranks Analysts -- Strong Buy with 12 analysts Bullish, 0 Neutral and 0 Bearish
Wall Street Analysts -- Bullish with 32 analysts Bullish, 5 Neutral and 0 Bearish
Given its overall consensus that it's a Buy, it qualified as an add on even though MA is already overweight. It is now close to a 2x sized position and is set up on dividend reinvestment as well. |
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