RobsonPL/iStock Editorial via Getty Images Consumer Staples stocks have quietly produced gains so far this quarter, nearly keeping pace with the tech-dominated S&P 500. While there has been an uptick just recently in Consumer Discretionary stocks, namely a fresh high in shares of Amazon ( AMZN ), many blue-chip Staples continue to trade at premium valuation multiples in the face of a booming broader market. I believe that will generally persist.
I am upgrading The Procter & Gamble Company ( NYSE: PG ) from a sell to a hold. I questioned its valuation and pointed out technical risks early last year, but failed to appreciate the durability of the company and its management’s execution. While I do not see the stock as a bargain today, risks appear balanced.
Shares have returned 23% since the original analysis compared to a 35% S&P 500 performance. QTD S&P 500 Sector Performances: Staples Holding Up Well Koyfin Charts According to Bank of America Global Research, Procter & Gamble, one of the world's largest consumer products companies, operates under five segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby & Family Care. Brands include Pampers, Tide, Bounty, Charmin, Gillette, Oral B, Crest, Olay, Pantene, Head & Shoulders, Ariel, Gain, Always, Tampax, Downy, and Dawn.
Back in April, PG reported a mixed set of quarterly results. Q3 non-GAAP EPS of $1.52 beat the Wall Street consensus forecast of $1.
41 while sales of $20.2 billion, up just 0.6% from year-ago le.
