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5-Star Stocks Poised to Pop: Procter & Gamble

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, consumer-goods giant Procter & Gamble (NYSE: PG  ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Procter & Gamble's business and see what CAPS investors are saying about the stock right now.

P&G facts

Headquarters (Founded)

Cincinnati, Ohio (1837)

Market Cap

$196.44 Billion

Industry

Household Products

Trailing-12-Month Revenue

$85.33 Billion

Management

CEO A.G. Lafley (Since 2000)

CFO Clayton Daley Jr. (Since 1998)

Brands

Gillette, Duracell, Pampers, Tide

Return on Equity (Average, Past Three Years)

19.6%

Dividend Yield

2.5%

Competitors

Colgate-Palmolive (NYSE: CL  )

Unilever (NYSE: UL  )

CAPS Members Bullish on PG Also Bullish on:

Johnson & Johnson (NYSE: JNJ  )

Altria Group (NYSE: MO  )

CAPS Members Bearish on PG Also Bearish on:

Citigroup (NYSE: C  )

Dell (Nasdaq: DELL  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

Over on CAPS, 1,420 of the 1,451 All-Star members who have rated P&G -- some 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include lordelrond and DemonDoug, both of whom are ranked in the top 5% of or community.

Last month, lordelrond wrote:

People will consistently buy consumer goods. I know that when I cut back I'm not cutting my toothpaste and toilet paper. [Procter & Gamble] will innovate, cut costs and adapt to the ever-changing market.

An earlier pitch by DemonDoug in July shares that sentiment and taps the stock as an ideal way to recession-proof your portfolio:

Yield 2.6%. Solid. ... This company has been around for 171 years. That means it didn't just survive the depression and 2 world wars, but also multiple depressions in the 1800s. ... Expect [Procter & Gamble] to keep growing steadily over the next 10 years.

What do you think about P&G, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Unilever and Johnson & Johnson are Motley Fool Income Investor picks. Dell is an  Inside Value selection. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 03, 2008, at 3:15 PM, patrickomalley wrote:

    If you own P&G, and have to decide whether to take the compnay offer to exchange stocks for Folger's stock, what would you advise that we do?

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Related Tickers

5/24/2012 3:04 PM
PG $62.46 Up +0.07 +0.11%
The Procter & Gamb… CAPS Rating: *****
JNJ $63.00 Up +0.34 +0.54%
Johnson & Johnson CAPS Rating: *****
MO $32.19 Up +0.47 +1.48%
Altria Group, Inc. CAPS Rating: *****
UL $31.70 Down -0.23 -0.72%
Unilever CAPS Rating: *****
C $26.50 Down -0.65 -2.39%
Citigroup Inc CAPS Rating: ***
CL $98.90 Up +0.51 +0.52%
Colgate-Palmolive… CAPS Rating: *****
DELL $12.36 Down -0.14 -1.08%
Dell CAPS Rating: **

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