Follow Andrew Keene Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
2020 hasn't necessarily been a walk in the park for the old-school companies that dominated the market back in the day.
Some of them have been struggling, or treading water, or just plain middling for a good chunk of the 21st century so far. International Business Machines Inc. (NYSE: IBM) recently announced a really smart move that should shake up the stock, but for every IBM, you've got, say, an Exxon Mobil Corp. (NYSE: XOM) – a company that's rapidly losing ground to the newer, stronger renewables segment.
I've said a few times now that, really, there's no telling how much longer any actual "industrials" will be left on the Dow Jones Industrials; they're quickly being booted and replaced by "new economy" stocks.
With all that said, I've got to give it up to Procter & Gamble Co. (NYSE: PG), an old-line blue chip our great-grandparents might've owned – hell, might have even passed down to us!
Its recent strong earnings performance contained beats across the board: Earnings per share came in at $1.63 versus the expected $1.42. Revenue topped $19.3 billion – smashing the estimate of $18.38 billion.
That's an impressive performance for any company – new or old – during this COVID-19 pandemic. And that's why I'm doing something I (almost) never do…
Procter & Gamble's Strength Makes Good Sense
P&G makes consumer goods, and, at least where I live, consumer goods flew off shelves for the best part of an entire quarter.
Hygiene, cleaning, laundry – name it – you couldn't get 'em for love or money. And not just in the United States. Procter & Gamble products were in crazy high demand all over the locked-down world, and the company does business all over the globe.
EXTRA INCOME "HACK": This could be your shot to collect $1,000 to $5,000 a week – regardless of how volatile the markets are. Find out more…
When you dig into the company's performance, five segments stand out as being loaded with momentum: Fabric and home care, health care, beauty and grooming, baby and family care, and health. All saw massive jumps in sales.
And, heading into a winter where we could, in theory, see a return of coronavirus-induced lockdowns, the company could see even better quarters ahead.
In fact, if anything, performance should improve.
And, while I'm usually not one to make big buy and hold recommendations, I've got to do it here. Ultimately, Procter & Gamble is too juicy of a profit opportunity to pass up.
It's easier to grab PG shares than it is to find hand sanitizer…
Here's How and Where to Buy
Even if we manage to avoid another lockdown of some kind, people who've gotten used to buying P&G products online through Amazon or Walmart will keep doing that. That adds up to fatter margins for the company and an even bigger footprint for them "beyond" brick and mortar store shelves.
OPTIONS 101: Tom Gentile has been teaching people how to trade for decades, and his FREE guide has everything you need to get started, from the basics to essential do's and don'ts for profitable trading. Click here now.
And even with it being months later and supply returning to stores, I don't expect this trend to slow down anytime soon, especially since P&G sells online via Walmart and Amazon – which creates another massive market for them outside of store shelves.
The stock has gone ballistic since July, when it left the $115 level in the dust. Around $136 or $138 represents the most recent support, so I'm looking hard for any re-test of those levels. When I see that happening, I'm buying – and so should you – but it's attractive even at current levels.
And before you go, in the time it takes to watch a movie, you could be setting yourself up to add thousands to your portfolio.
You read that correctly… just 90 minutes of your time per week is all it takes to show you exactly how this revolutionary, just-released trading system works and how you can score big with it – regardless of what the markets are doing.
Follow Money Morning on Facebook and Twitter.
About the Author
Andrew Keene, editor of the 1450 Club, Super Options, and Project 303 at Money Map Press, is a globally known trader and a renowned expert on all things options.